What Makes Some Real Estate More Valuable than Others?
Value is held within the eyes of the buyers. It is also true that value is also held in the eyes of the property owner and unless we are talking about an investment property the value a property owner places on their home increases over time as they add improvements. This is often the reason why buyers and sellers may not always see property value the same and why negotiation is typically a standard practice when buying and selling property. The property does not have a set retail price.
However, all property owners were at one-point buyers and when they decide to sell, they will likely once again be a buyer. What people look for when buying property remain largely the same. Here are a few factors that make some real estate more valuable than others.
For the most part property value is based on how well it accommodates our desired lifestyle. And when it comes to lifestyle location is key. Now more than ever, with people being able to work from home on a permanent or semi-regular basis location has become somewhat more flexible. This is a great reason why property growth in regional areas around Australia is booming. People can now choose property location based on how well it fits their lifestyle requirements i.e., hobbies and proximity to family and friends.
If we can avoid long commutes and traffic delays we will. If it takes longer than 20 minutes to work or to get to our favourite hangouts, the value of a property is less. People are ready to spend more time in their local communities rather than travel further afield. This shift in need means we will see more infrastructure in community hubs that provide lifestyle benefits. Communities coming together! We value having the benefits of being near our favourite entertainment, sport, recreation and education and service facilities.
Size is an important factor for all singles, couple and families. Singles and couples may prefer to opt for smaller living quarters in favour of lower maintenance so they can partake in more social and leisure activities. They favour being close to the action which is why inner-city living is popular. Although COVID has shaken this a bit, unless regional areas can provide the infrastructure people desire, once the pandemic settles, people will flock back to the cities.
As many people are now spending more time working from home, office space or even separate office spaces for couples is becoming more paramount. Generally, families are also in favour of lower maintenance and will always value properties that present this way over others. However, large-sized homes are certainly favourable. For families offices spaces are critical and equally, there needs to be enough space inside to allow adults and children their own entertainment spaces.
The uniqueness of a property will always help attract more interest and therefore associated value. We are proud of our homes and love a house that has a bit more heart, one that we will be proud to call home. Properties that offer a point of difference, that stand out above others, like a luxury car, always prove more valuable than those that don’t.
Finally, does the property provide growth opportunity? This can come in several areas. For example, if a property is near the main transport hub, rail station and future population growth are forecast to increase, property values will grow and buyer demand increases. A great example of this is what is currently happening on the Sunshine Coast. The other growth opportunity is what unseen value can be added to a property. If we can add value and increase our return beyond our outlay, a property may be more favourable.
And the end of the day most of us value our home and I think this will be more evident over the year to come as more people will choose to stay in their home for longer periods while making adjustments and improvements along the way to suit.
