Five Factors that Affect Real Estate Values

When you consider calculation and comparison of real estate values, it will be easy to buy or sell one. So how much is your real estate really worth? A number of different factors determine the value of a house. While some are based on economic theories, others are based on intangible factors.

Location of the real estate property: The location of the property is one of the main things that affect the real estate values -

• Traffic noise


• Location of the neighbourhood


• Industrial areas close by reduce the value


• High end neighborhoods will increase the real estate values


• Close proximity to school, offices, grocery, shopping, hospitals, beach, public transportation and library will ensure higher real estate values

A great real estate property in an average neighborhood can reduce its value greatly. Thus, positioning of the property greatly affects the real estate values.

Area size: The landscaping of the house also affects the real estate values. Factors to consider are:

• Space between home and next house


• Backyard space


• Front garden space


• Enough privacy


• Built on flat land or slopes


• If the house is situated too close to the road

Exteriors: The exterior of the home or apartment is very important. If you liked the exterior well enough to buy then you will not have a problem while selling the same to another buyer to make an investment. If the exterior is not great looking or has deteriorated since you bought it then you might want to consider enhancing it just before the same. If the other buildings in the area have a derelict look that too might affect the overall real estate values.

The House Itself: Most home values are affected by their own specific features like number bedrooms. One bedroom apartments have a lesser chance of sale than two bedroom one. In cases such as this, if your home is an independent property then you may want to consider expanding it. Moreover, you will have to consider whether the extension is possible or not? Moreover, if the fittings in the house are old or updated, the real estate value is sure to decline as compared to homes with fully updated fittings. Thus, outdated fittings in a home can reduce its value greatly.

Economic Factors: Various economic factors affect real estate values. Some of them are:

• Supply and Demand: If the demand of the real estate increases more than the supply, the real estate value tends to go up.


• Interest Rates: When interest rates rise, the cost of variable mortgage payments also increase. The higher interest rates make real estate investments less attractive.


• Economic Growth: As the economy grows, salaries and wages also increase. This increases the purchasing power of the real estate.

Some factors like location, proximity and economic factors are out of hands, while some like adding curb value is in our hands. For example, most prospective buyers would choose light and airy rooms over dark ones or those with modern fittings rather than outdated ones. It is very important to be realistic when deciding real estate values to ensure a quick and fruitful transaction.

Wake up to the cheerful chirping of birds at Chirping Woods

Affordable apartments in the heart of the city at Shriram Sameeksha

The post Five Factors that Affect Real Estate Values appeared first on Shriram Properties Bangalore.

by Sridhar Kulkarni via Shriram Properties Bangalore