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What affects the value of a house?
When you put a property on the market, there’s a whole host of factors that can affect how much it sells for. In many cases, you’ll have some control over how you can up your home’s value, but this isn’t always so.
Location, location, location
The number one factor is where your house is situated. Is it close to transport links - road access, public transport and so on? Are there good local amenities like schools, shops, restaurants, pubs etc.? Is your home in a location that is convenient for commuters? These are all the key drivers of the value of your house.
The age and size of the property
In most cases, having more bedrooms or bathrooms will push up how much your home is worth. For example, a three or four bedroom property is likely to fetch more than a one or two bed in the same area. Of course, there are other factors involved, and the size of the rooms and their state of décor has an important part to play in a valuation.
By including other desirable features – such as an en-suite bathroom or a large, open-plan kitchen – you could raise the value of your property.
If you’re thinking of making some home improvements to your property, like extending your kitchen or adding a new bedroom, you might be wondering how you’ll go about financing them. Ocean offer secured loans of between £10,000 and £150,000 which could be suitable for making these kind of changes.
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The age of the property is also important – for example older properties may be highly sought after because they often have larger room sizes and desirable period features. That said, newer properties are often more energy efficient. Similarly, detached properties are often considered desirable, but terraced can be warmer!
The condition of the property inside (and out)
The next most important factor is the condition of your property – both inside and out. If your house is smartly (but neutrally) decorated, with desirable features – from double glazing and central heating through to a nice kitchen – then it will probably be more attractive to buyers.
Externally, it helps if your house has “kerb appeal”. Is the external paintwork in good condition and are the garden and boundaries (fences or hedges) well-kept? Unfortunately, the same will also apply to your neighbours’ properties too – how they look will impact the value of yours.
If you live in a flat, the state of any communal areas will have a similar impact.
Unfortunately, not everything that can affect your home’s value is under your control. The economy, for one, plays a key role in determining the value of properties.
When the economy is suffering, you’ll generally have more trouble selling your home, as people are less likely to have money to spend on moving house and will be feeling less confident about taking on a new mortgage. This means demand for property will probably be muted, which may mean lower prices (or less strong growth in house prices). In contrast, when the economy and wages are growing strongly and unemployment figures are low, people usually feel more able to take on a mortgage. So demand for property will be strong – and prices are likely to rise.
When it comes to factors you can’t control, such as the economy and the location of your property, it’s no use worrying about how they’ll affect your home’s value. As these are out of your hands, there’s nothing you can do to affect the outcome. Instead, it’s best to turn your focus to the aspects that are in your control, such as the size of your property and its condition. Making home improvements is something you should have full control over that has the potential to truly improve your home’s value.