factors that affect house prices

5 factors that influence property valuation

Anyone thinking about buying or renting their first apartment needs to deal with some doubts about what affects the valuation of the property of interest.

This is quite common, after all, some explanations for the price of an apartment consider the potential that the region can achieve in the future.

But if no one can say for sure what will happen in the years to come, then why pay for something that may not happen?

Calm down, not quite. In fact, there is a very rational explanation for this appreciation, and this is what we present in the following topics. Check out!

1. Location of the property

To clarify immediately, location is one of the factors that most influence the price and, therefore, the square meter (measure used for comparison and pricing) is usually more expensive in regions that:

  • they have a beautiful definitive view;
  • they are homogeneous on a social level, with the presence of other properties in the same pattern;
  • they are located in central or more famous areas, such as by the sea;
  • have a predominance of flat area;
  • Have a low rate of violence; etc.

2. Accessibility to urban resources

Accessibility to urban resources also comes in to further improve the location of a property. This is because supermarkets, bakeries, pharmacies, hospitals, well-planned access routes and good bus or metro connections facilitate the residents’ routine.

3. Security of the region as a factor of property appreciation

When a neighborhood is already consolidated, the possibility of irregular constructions, which may harbor illegal acts, is almost non-existent, which increases the level of security.

But in addition, the rates of assaults and robberies in the region, which are measured and released by security agencies, are also taken into account. The quieter the neighborhood, the more valued it is.

Private security measures, such as a 24-hour concierge, surveillance camera systems and patrols hired by residents can increase the value of the place.

Situations such as proximity to police stations, prison systems and police battalions, however, can decrease the value of the property on the market, as they are the places where corrective measures are taken.

4. Regularization of the property documentation

Properties with arrears in city hall fees and taxes, which do not have all the documentation or are linked to an inventory process may have their value reduced.

Penthouses, for example, do not always have authorization for the area built at the top. This can generate future expenses with the correction of IPTU and fines from the city hall.

5. Physical characteristics of the construction

Buildings with nobler external cladding, complete leisure area and garage with free spaces, for example, are better evaluated.

The possibility of carrying out reforms is also taken into account.  Older cities may have mansions for sale that are listed by cultural heritage, and therefore cannot have their façades modified.

The current conservation, and if it represents a great cost for the management of the building or residence, are also points of attention. The greater the need for frequent investment, the less valued it can be for the costs it will generate in maintenance.

Has the way in which property valuation is calculated become clearer? Such considerations must be used by the buyer in his choice, after all, it is necessary to think about the investment.


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