Finding the accurate property price or value of the property that you are buying or selling is very crucial in real estate. Figuring it out by yourself is a pretty difficult thing. Real estate agents determine home values by doing what is known as competitive market analysis or CMA. Prestige Park Grove in Whitefield is an excellent property. While estimating the property value, a real estate agent must consider certain parameters such as the location of the property, the condition of the property, and the condition of the housing market in that area. Other than this, the age of the house must be taken into account, such as the square footage of the home, the number of bedrooms and bathrooms, any recent updates in the house, and several other factors.
Apart from these the real estate agents determines the property value through other factors which are as follows.
This is one of the most important factors that determine the value of the property. The price of the property will be higher in a developed area than in an underdeveloped or developing area. The appreciation value of a property increases with time if the property is in a very promising location. The seller, as well as the buyer, could be benefited from the advantages that a location has. Location is the key factor that determines the value of the property.
The world is running after luxury today and if a property has high-end amenities and facilities, it will directly increase its value of the property. The natural resources or the investments added to increase the value of the property are considered amenities. If a property has modern amenities, it increases the value of the property more than the property without any modern amenities or facilities.
Infrastructure is another important factor that determines the value of a property. Connectivity, airport proximity, roads, railways, water supply and resources, proper waste management, power generation and transmission, schools, health care facilities, malls, entertainment hubs, shopping centers, leisure facilities, and much more influence the value of the property. If a property is close to every necessary social and physical infrastructure it generally adds value. Infrastructure can increase connectivity, facilitate productivity, create job opportunities and stimulate trade which will, in turn, enables economic growth, thus adding to the value of the property.
Availability of Land
The price of a property is usually higher where there is a scarcity of land and is cheaper where the land availability is higher. Thus, the availability of land contributes as a major factor in determining the value of the property.
Demand and Supply
Just as how the availability of land affects the value of the property, the demand and supply are very crucial in the case of real estate. They are inversely proportional to each other. In a place where the supply is low, the price of the property is way too high as there is a huge demand for the property in that area. As it is inversely related, the more of something is available, the less valuable it becomes.
Affordability is the cost that a buyer would want to pay to buy the property. This largely depends on interest rates, property prices, and wages. When all three of those hit a high, a buyer starts to explore a better lifestyle.
Structure and Age of the Property
The materials used while building the house, its layout, design, and its durability will largely impact the price of the property. If the property is built with excellent materials, then an increase in value could be expected.
The age of the property is another major factor that determines its value. If the property is new and not many repairs are needed, then it has a higher value. The condition of the house must also be excellent, even if the house is old and well-maintained people would go for that, rather than buying a new house which needs any renovations.
If the commercial real estate at the location is booming with the development of IT Parks, malls, and special economic zones near the property, making it easier to access for the people living in that area then the property value will be increasing.
Knowing the exact value of the property is very essential in any real estate business. If you hire a professional real estate agent, they could help you find the actual value of the property after analyzing the given factors with many others.