One of the ways of assessing the value of a property is comparing selling prices of similar homes in the neighborhood. However, this comparison becomes difficult or inaccurate if the home being assessed is poorly maintained.
Many factors come into play when assessing the value of your property. These include:
Properties are valued according to size and are often measured in square meters or square feet.
Amenities such as a pool or garage may add value to your property. If it's a residential property, remodeling jobs on the kitchen and/or bathroom will affect your property's assessment.
As always when it comes to real estate, location is a key consideration. Is the property located in an urban area or waterfront?
Demand for the Property
Where the likelihood of jobs is high, demand for property will also go up, and so will its value.
What are the amenities in the neighborhood? Is there a school, a shopping mall, or a hospital in the vicinity?
What are the planned projects in the neighborhood? Is there an upcoming road, stadium, etc.? All these factors will push up demand for and value of the property.
Age of the property
This is where maintenance comes in. There is what is called the economic age of the property, which is different from its actual age.
The actual age of a property is calculated based on the actual year the property was constructed. It does not take maintenance into consideration.
The economic age of the property is the amount of time the property has left. This takes into consideration the maintenance of the property.
A poorly maintained property depreciates faster than a well maintained one, even if they were built in the same year.
Maintenance only affects the economic age of the property but not its actual age. It may seem like the state of repair of your property has little bearing on the value of your property.
Although maintenance may have little effect on official assessments of value, a poorly maintained property will be unattractive to buyers.
Regardless of the paper value of your property, the amount of money you get for it will depend on how potential buyers perceive it.
Don't expect to get much money from a rundown, derelict property. If you are still interested in the paper value of your property, get an appraiser to do a proper valuation, and look for good real estate agents to advise you on your potential purchase.Share
27 February 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.