It is usually the case that before a homeowner puts their house on the market, the property is assessed as to its value. Having a home properly assessed is important, as the value of property will determine the property tax bill and the overall amount for which the house will sell. Whether you are thinking of selling your house or not, as a homeowner, it is important for you to consider the following 5 major factors that can affect your home’s property value so that you can get the highest return on your investment in the future.
5 Major Factors That Affect A Property’s Value
While there can be many factors that determine the value of a property, it really comes down to the following top 5 that have the largest affect on a property’s value:
The Age Of Buildings On The Property
One of the most important factors that has an affect on the value of a property is the age of the house and other buildings. And while newer construction naturally adds more value to a property, a well-maintained and renovated home can add significant value to a home that is somewhat older.
Total Square Footage Of The Living Area
When calculating the square footage of a property’s living area, property inspectors measure the exterior of the home. However, your basement, porch, garage, and deck are not included as part of this measurement since these are usually not heated and finished as living spaces. This is important to consider if you are looking for a higher return on your investment since homes with more bedrooms, bathrooms, and other usable living spaces sell for much more.
Location Of The Property
Quite possibly the most important factor that can influence the value of any home is its location. Afterall, the neighbourhood where your home is located will have a direct influence of what prospective buyers will be willing to pay for it. So, it is not uncommon to see families with small children buy residential properties in suburban neighbourhoods that offer more space. Other home buyers, like those individuals looking to live in a vibrant city setting, may choose to buy a condo in a diverse neighbourhood with more “urban” options available.
Other factors that can influence the value of your property based on its location can also include the following:
- Natural boundaries, such as ravines, and major streets.
- Similarity of physical environment, such as access to public transit, proximity to schools, libraries, parks, and shopping centres.
- Similarity of housing stock, including the quality, size, age, and type of housing.
- Similarity of municipal servicing, such as sewer, water, and hydro.
- Historic significance, for example, a designated heritage neighbourhood.
- Desirability.
Size Of The Lot
Home inspectors assess the size of a lot by calculating the lot’s area and multiplying the frontage by the depth. Other legal documents that also provide the size of a home property include the following:
- Parcel Register of the Land Registry Office.
- Land Transfer Tax Affidavit.
- Land Transfer Tax Statements of the Land Titles Office.
Quality Of Construction
Last and certainly not least, the construction quality of a home will greatly influence the property’s value. So, homes built according to modern safety codes with quality materials and good workmanship will undoubtedly bring a higher return on investment for the seller.
If you are considering doing renovations to your home, whether to add value to your property or to upgrade your home’s look and condition before selling, contact us today so that we can provide you with the best advice on how to do the job properly and affordably so that your home can have the best possible curb appeal.
