A lot of first-time home owners and real estate investors tend to concentrate on the style and functionality of their proposed purchases while expecting such characteristics to result in increased property value. However, there are actually factors that can influence a home’s true value.
Ensuring a home’s true value can be tough even for seasoned real estate professionals. Every evaluation requires subjective and objective factors. On the huge scale, interest rates can make homes throughout India more or less affordable and this is a factor is beyond the control of home sellers, buyers or real estate agents. On the local scale, market trends can influence the value of a home. Keep in mind that real estate prices flow every day based on how the economic situation moves. A lot of property listing websites in India provides more information on this.
Objective factors like residency status, kind of property, the number of bedrooms and stories, presence or absence of a fireplace as well as the land’s total square footage contribute to a real estate appraisal. Also, the kind of heating, size and number of garages, presence or absence of central air conditioning, size of the lot, degree of finishing, basement dimensions and the age of the property can have a significant effect on the final value of a home.
Semi Subjective Factors
These factors can also play a significant role. A house that is kept tidy and neat with a yard which takes pride of a nice aesthetic can be sold for much more than a home that has a similar design in the same location but with poor yard maintenance and upkeep. Also, it is important to take into account the financial and psychological states of the seller and buyer. In general real estate, this can be made complex by idiosyncratic financial features or sensitive timing. A deal’s speed is likely to make the home worth more of less than it could sell in a normal situation.
Finally, a house’s true value can rely upon the closing negotiations. When a home seller works with an experienced real estate agent and he meets the conditions of the buyer, the negotiation is likely to end in an inflated price. Conversely, when the home seller is not ready or if the possible buyer appears with a team of great negotiators, the property may sell under its true value. The essential thing to keep in mind is that the value of a home is not a constant number. Rather a variable or collective fiction which may be pinned down only by a number of competing factors.