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Last Updated on September 15, 2022
When buying, selling, or renting a property, whether to live or invest, you should be aware of several factors, such as possible causes of appreciation or devaluation. Knowing what drives the property to appreciate can be one of the key factors in deciding whether to buy the property or not.
With that in mind, we prepared this post with the main tips that should be taken into account when buying a property – thinking about its appreciation. Sky Marketing describes the importance of having a real estate agent to assist in this very important process.
Next, we will list and address the 9 main factors that may influence the subject. Are you interested? So, keep reading this text and find out what these factors are!
Why is a real estate agent important to assist in negotiating a property?
A non-specialist can make wrong decisions when purchasing a property because of his ignorance. Knowledge can come from reading about the factors that lead to valuation, such as privileged information and experience dealing with the issue.
In this way, when buying a property, professionals in the field must be sought to indicate the best path to be followed by you. With this, hiring a real estate agent with experience and a good reputation in the market is the first step in making a successful negotiation.
What factors influence valuation?
The location of the property greatly influences the value and its appreciation over time. If the Florida property is located in an area that suffers from degradation, it will certainly become increasingly undervalued.
If the building is in an area where the reverse process, technically known as gentrification, occurs, the opposite happens. The appreciation also occurs with the site’s expansion, the opening of new roads, and the implementation of services and infrastructure, such as the installation of a lighting and sewage network, for example.
Therefore, avoid areas close to highways and busy avenues, as these roads have the potential to devalue an entire region. Also, avoid choosing areas close to the region of irregular occupation, which can be dangerous.
2. Local trade
Another factor to be evaluated is the analysis of local commerce. If commercial activities are busy, this is a sign that the urban vitality of the place is on the rise. On the other hand, closed shops are a sign that, perhaps, the neighborhood is undergoing a process of degradation.
The world is changing, and many of those changes have been for the better. If there was almost no concern about accessibility before, this is now a differential. Accessibility, it is worth remembering, is nothing more than a criterion used to analyze how accessible space is for all people, whether children, wheelchair users, or for the elderly.
In this way, the greater the level of accessibility of a place, the more open it will be to all city citizens and, therefore, the more valued it will be. If you are looking for a place that is accessible from all the aspects, you may visit Kingdom Valley.
4. Internal conditions of the property:
The internal conditions of the property should also be considered when making an assessment and analyzing the valuation of the place. Both physical aspects, such as the coating and structural characteristics, as well as aspects of the location of the property, such as sunlight and natural ventilation, must be observed.
For this, it is recommended that you contact professionals in the area, such as brokers, engineers or architects, to receive a technical and in-depth opinion on the subject.
Security is increasingly an important factor in our society due to the growth of violence that we have witnessed in recent decades. Thus, this is an essential item when evaluating a property. Safe neighborhoods show an appreciation of their properties, while in unsafe neighborhoods, the price plummets.
6. Invested Technology:
Technology is increasingly present in our lives and should not be seen as an enemy but as an ally. In this way, properties that use technology to solve problems show greater appreciation in relation to those that do not.
The technology can be used as a means to automate doors, close faucets, and turn off electrical equipment, in addition to assisting in safety.
7. Public and private investments in the surroundings:
Evaluate the insertion of public and private investments in the property’s surroundings. For example, if a park, square, or mall is to be built in the region, the property should appreciate.
On the other hand, it is still possible that the same investments negatively influence the price of the property, such as the construction of a prison. You should consider the projects that have the potential of 100% profit. For instance, you may check Nova city islamabad as it offers a great opportunity for the buyers and sellers.
Documentation, although little observed, is quite decisive when analyzing a property. Many buyers, and even professionals in the field, fail to propose when they realize that they are facing a property full of problems related to documentation and will face much bureaucracy.
In this way, it is recommended that you keep up with the fees charged and that you always leave the property with the necessary documentation up to date so as not to scare away potential buyers or renters.
The condo level also has a big influence. If it manages to offer good security and good leisure options, it can positively influence the final value. On the other hand, those with unrealistic condominium fees, few security mechanisms, and few leisure options can also influence, but negatively.
In view of the above, it is worth noting that it is necessary to analyze all the factors presented – which will be taken into account in the property valuation. This way, you can guarantee a fairer deal with good prospects for the future!
Now that you already know the factors that influence the valuation of a property get in touch with Sky Marketing and ask any other questions you may have. We have professionals specialized in the subject and with years of experience!