This will give you a realistic idea of how much you will be able to spend on your next home if you are reinvesting. There are a number of myths around property value, so join Lew Geffen Sotheby’s International Realty as we debunk some of the common ones.
How do you define property value?
Simply put, property value refers to the monetary value of a piece of real estate. This value is impacted by various factors, including location, the size and condition of the property, market trends, the price of comparable properties in the area and various features of the property. As a homeowner who has spent many years living in and loving a home, it can be very difficult to be impartial when thinking about your property’s value — which is one of the great reasons to enlist the help of a qualified and experienced property practitioner when it’s time to value your property.
Common misconceptions about property value
When assessing their property value, many homeowners fall prey to common misconceptions that can lead to inaccurate perceptions and financial missteps. While factors like location undeniably play a significant role, there are several misconceptions to be debunked. The list of key factors that influence the value of your home may surprise you. Let’s dive in.
Misconception 1: The size of your home is everything
Many homeowners believe that bigger is always better when it comes to property value. However, while square meterage does play a role in determining a home’s worth, it’s not the sole factor. Factors like layout, functionality and condition also come into play, and a well-designed, well-maintained and efficiently laid-out smaller home can command a higher price than a larger property in need of maintenance.
Misconception 2: Home renovations always increase property value
There’s a common belief that pouring money into home renovations will automatically lead to a significant increase in property value. However, while certain renovations can indeed boost a home’s worth, not all improvements will provide a favourable return on investment. For example, putting in a swimming pool may seem like a great addition for your family, but a prospective buyer could actually see this as a liability.
Misconception 3: Aesthetic upgrades are the key to increasing value
Many homeowners prioritise cosmetic upgrades like trendy paint colours, stylish fixtures and other upscale finishes in the hope of boosting their home’s value. These upgrades may enhance the appeal of a property, but they are unlikely to have an impact on its value. Buyers tend to prioritise structural integrity, energy efficiency, modern kitchens and sophisticated bathrooms above other factors. Replacing the roof, upgrading to a solar geyser or remodelling the kitchen is far more likely to enhance your home’s value than a fresh coat of paint.
Navigating the myths and facts of property value
The easiest way — and in fact the only smart way — to navigate the myths and facts of property value is to do so with the help of a qualified property practitioner. Most real estate agencies, including Lew Geffen Sotheby’s International Realty, will happily provide you with a free property valuation. Various factors, including the condition of your property, the state of the neighbourhood and the larger economic forces at play will all have an impact on your property value, which will form the basis of the pricing strategy if you should choose to sell your home.
Your home should inspire you
The team from Lew Geffen Sotheby’s International Realty is on hand to give you a property valuation or to advise on renovations that could enhance the value of your specific property. Get in touch today and let’s talk about your property and what it’s worth.
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