The Value Of A Property’s Key Factors
When you’re in the housing market to purchase a new home there are a few key factors to consider and keep an eye out for. Although the property itself may meet your criteria and checks out, you should also be concerned with the neighboring community prior to signing above the dotted line when making your overall decision.
A property’s value is also based on several contributory elements that many of us may overlook for a variety of reasons. Some of which we may not even think about. Below we’ve compiled a list of items you should put some critical thought into when seeking the right property to call home or invest in.
- Public Transportation– Not everyone has excess funds to purchase a vehicle so a home in an area where public transportation is easily accessible is a key element to look out for.
- Shopping Centers & Plazas: Malls, Supermarkets/ Grocery stores.
- Eateries: Local Restaurants and coffee shops that are close in proximity.
- Recreational Facilities/ Outdoor Amenities: Parks (dog parks), gyms, hiking trails, amusement parks etc.
- Schools Districts and Daycare Centers: School districts are a serious factor for families when deciding where to settle down. Neighborhood’s with low to no crime rate stats are definitely places that a family wants to raise children. Or look at it this way, think about the type of individuals you’d want your children to grow up around and foster friendships with. We are all products of our environment.
- Personal & Pet Grooming: Hair salons/ Barber shops/ Pet Shops etc.
Putting aside those ancillary and granular items you’ve most likely taken a closer look at, the more typical things one should consider when looking for value in a property is the year it was built, it’s overall condition, it’s size (the entire lot & sq feet of house itself, considering land taxes) and any unique host of features the property may come with. A good way to know whether you’re getting a good price on a house are by checking it’s “COMPS”. A house’s COMPS reference the “Comparable” property prices of the surrounding houses in close proximity to the one of your choice within a one mile radius.
Analyzing the COMPS will give you a good average of the typical price of houses for sale and houses that have recently sold. Keep in mind, the COMPS’ style/layout must be the same or very similar to the one you’re considering because it should be obvious that a two family house won’t sell for the same price as a single family house and so on and so forth.
With all that being said, when the time comes to making your move on the decision of purchasing your first home or investment property these are some of the main factors to consider. You should always evaluate a property’s accompanying attributes to get the best value out of the deal.
If you have anything to add to this feel free to speak your mind in the comments section below. We look forward to your input.