Which factors influence the real estate market

Property valuation: These factors determine the price of your property

The domestic market

A decisive factor in the Property value co-determined, is the state of the domestic market. For example, in the UK, the Real estate prices Slightly down in 2017 due to a slowdown in the market. On the other hand, real estate values ​​in Germany have skyrocketed in the last 20 years due to a changing cultural attitude towards home ownership, in which the number of buyers has grown.

If housing and house construction are subsidized by the state, this supply of supply lowers the average property value, while stagnation and rarity generate higher demand. Lower key interest rates from the national banks help first-time buyers to put one foot on the ladder, which leads to a slight increase in home valuation due to the higher market enthusiasm.

The local market

The regional market is also a decisive factor in determining prices. Aspects such as location, nearby facilities, schools, infrastructure and the regional labor market are also included. Since other properties in your area have these similar properties, they will benefit from these value-adding properties too. However, that means that your community has its own maximum price that your home can achieve through renovations and improvements. Investments in the region can, however, have a positive effect on this maximum price, as can be seen in the neighborhoods around the new Crossrail traffic expansion of London has seen.

As the rental income potential increases - which includes both residential and holiday rentals - real estate prices in the region will also rise.

Lover properties: Uniqueness increases the property value

Supply and demand also work on a smaller scale in the real estate industry if your property is a collector's item. Peculiarities such as home cinema rooms, swimming pools or historical decorations give a property an attractive luxury element, especially since these are not the simplest bonus functions on the market. Even something as simple as hardwood floors influences buyer interest; around 54% of American homebuyers would pay more for a property that has wooden floors.

Repair the property before the appraisal

Last but not least, the condition of a property also has a significant impact on its value. Therefore, it can be worth improving this before selling it. For example, installing a new kitchen or bathroom suite can add between 2.5 and 5% to the value of your property. The front door can also have a major impact on the value: a large, massive and inviting front door can bring an attractive increase in value at comparatively low costs.

For an accurate property valuation that takes into account all of the factors mentioned here, it is advisable to use theHelp from a professional real estate agentto claim something. We are looking forward to your contact!