When buying or selling a home, several important factors determine property value – and it’s not just about a new set of cabinets or renovated tile work. Knowing which factors matter the most can help any investor maximize their purchase or profit further from a sale. Here’s what to pay attention to when assessing or optimizing property value:
Location. There’s a reason the unofficial mantra of real estate investing is location, location, location. Everything from the average income of area residents to the quality of schools affects your property’s value. List the assets of the property’s location before you buy or sell. Also keep the area’s flaws in mind. But don’t worry if you haven’t purchased a house in the Hamptons. You can sell potential buyers on renovated or hip new neighborhoods as well.
Bathrooms and kitchens. When it comes to interior renovations, kitchens and bathrooms punch above their weight. Cosmetic and structural renovations to these rooms can seriously impact property value. In fact, if you’re pressed for time or funds, focusing your improvements upon these two rooms will deliver the best return.
Land. You don’t need to own an estate to benefit from the love affair investors have with land. Even a small parcel dramatically increases the value of your home. When you post pictures of your home or host potential buyers, emphasize the back yard, side yard or other land attached to the property. Take care to improve or maintain these areas in order to significantly enhance the value of your property.
Evaluating property value with these factors in mind will help savvy individuals get the most out of real estate investing. Knowing what influences the list price is one of the best ways to become knowledgeable about real estate while making a tidy profit in the process.
