10 key attributes that increase property value
Category Advice
To accentuate market appeal of a property and probably to make more sense ofthe asking price, most property agents make a lot of mention of theneighbourhood, amenities and physical state of the property. That is, on theirpart, to acknowledge that there are certain attributes, features and qualities thatinfluences the value of a property. Similarly, for most people who buys or sellsproperty, these attributes affects and influences the asking price and for buyers,impacts their ability to increase or cut the offer price.This is so because for most people the assumption would be that the price andthe value of property are perceived as the same thing, whereas there are plenty ofattributes which may add or hinder an increase in the value of a property that attimes some have very little to do with the actual subject property and its quality."To maximise the impactthat your property makes,take your time, enlist thehelp of local real estateagents and work withqualified valuationprofessionals"- Mashilo Pitjeng12 Sep 2017
1. The kerbside appeal and outside lookThe first encounter any person has with a propertyis with its looks from the outside. Not only are thelooks of a property from the kerbside useful foridentification in terms of location, but they alsoserve as an important indicator of first appeal. Theoutside appearance informs the initial cut orpremium a prospective buyer attaches to the price.The more fresh, modern and universally appealinga property looks, the highly likelihood for it toattract a premium in offer price.It is not just about giving the exterior a touch ofpaint. The choice of exterior colours, visible signsof damage and quality of care, contribute toperception of value. Because, most valuers, inassessing a property, do take into account theoutside looks, the exterior finishes, the level of careand maintenance, all these informs the decision toincrease or discount the value of a property.
2. The neighbour's homePart of the value judgement on the kerb-sideappeal, has little to do with the subject property butthe effect the neighbour's property . It may soundlike a cliché the saying "before you buy a home,you must buy the neighbourhood". This is so true,because one of the biggest contributors ordeterrent to increased property value is the is lookand feel of the neighbourhood.
3. Amenities & AccessibilityLocation characteristics of a property has a greatinfluence on the willingness of buyers to pay higherprice. Similarly a valuer would attach a premium toa value of a property with good accessibility and issituated in close proximity to amenities. Forexample, a property fronting a well kept localpublic park has a higher likelihood of achieving anincrease in value or premium price. According tosome surveys proximity to local amenities caneasily increase value by up to 30%.
4. A well-maintained gardensIt's well researched fact that a property with nicelymanicured lawn or well maintained gardenachieves a higher asking price or more in offerprice, both of which makes for an increased value.Some industry surveys suggests the value add canincrease valuation by up to 20 percent.
5. An unblocked viewA property with great unblocked views will have apremium value than one with blocked views. This iseasier to understand for properties with views to anatural feature, such as an ocean, lake, mountainetc. However, this property attribute applies to allsorts of properties. Nobody, likes to wake up to aview of the neighbour's blank brick wall every timethey take a look out of their window.This is also a reason why properties located on ahill have a higher demand, are worth more andusually fetch a better price. Well documentedmarket studies indicates that average prices ofproperties located on a hill achieves more thandouble that of properties located in a standardlandscape. The increase in value of property fromhaving good views is estimated to effect aperceived value add of up to 66 percent.
6. Physical state of the propertyThe perception of value decreases if the visiblephysical condition of the property indicatesextensive work is required to bring the property tohabitable standard. This relates largely to the visualreference of the general condition of the property.
7. Layout of the propertyA property which provides the 'new owner' with thepotential to customize or upgrade, is likely to betaken into account positively by the valuer. Northfacing properties sell at a high price because of the"morning" and "afternoon" sun factor buyers lookfor. When attributing value, the layout and shape ofa property contribute to increasing (discouraging)buyer interest, thus affecting the offer price.
8. The interior design of the propertyTo a significant extend property valuation is aboutmarket expectation and potential buyers'perception. Therefore interior design choices canenhance or hinder increase in perception of value.It's important to take care with the use of certaincolours and design aspects that can add visualinterest in the property.12 Sep 2017
9. The kitchenThe kitchen is one of the most important interiorspaces in any property. It's a common mistake formost property owners to overdo kitchen featureswith fancy granite or marble tops and all-newstainless steel appliances. Although this lookssleek and modern, buyers want a functionalworkspace that includes good taps, cupboards,and bench-tops.For a valuer, the functional nature and layout ordesign of a kitchen is more important and doincrease perception of value add more than thequality of 'fancy' or 'expensive' installations.
10.Bathrooms and ToiletsAs with kitchens, it's possible to go crazyrenovating a bathroom space with all-new showers,toilets, tubs, and cabinetry. This may not benecessary to add value to your home, provided thatyour bathroom is in proper working order and freshin appearance. A good bathroom space will beboth functional and aesthetically appealing.With all said and done, it's always prudent beforeconsidering to sell or buy to consult with a localreal estate agent or a professional valuer.
Author: Marshilo Pitjeng
