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7 Unusual Things That Affect The Value of Your Property (#3 Will Surprise You)
In your opinion, what impacts property prices the most?
You’d be spot on if you said location….but are you aware that there are a number of other factors which is mainly outside of your control that could also affect the value of your property?
Hi my name is Zulika. An Heerden. And In this video I’ll go over a few which may surprise you.
1) Stock levels
The amount of stock or available homes is a calculation of how long it will take for the current inventory of homes to sell out. For example, if 100 homes sell each month and there are 300 homes available for sale, that translates to a 3-month supply of stock.
Markets with only 3 months of supply suggest that stock levels are low and that there are more buyers than available homes. Low supply and high demand leads to higher property prices. High supply and low demand have the opposite effect.
2) Interest rates
The lower interest rates go, the more buyers there are who can afford to buy a house. As more buyers come into the market, inventory falls. And as inventory falls, home values rise.
3) Street names
Believe it or not, but even the name of your street can impact the value of your home. According to a study by US property listings site – Trulia – “boulevard” is the priciest and as you can see here, followed by “Place”, “Road”, “Terrace” , “Court” all the way down to “Street”.
Now according to Trulia a home’s address suffix can mean a 36% difference in its asking price but I would not read too much into this data though.
In real life, buyers aren’t likely to pay that much attention to street names. Far more likely, they pay attention to what those street names reflect.
A name that reflects an “aspirational lifestyle” feature such as “Beach Road” has more value than “Street” because, chances are, the house close is somewhere close to the beach – and – as well all know properties that are closer to the ocean consistently sell at a higher price.
4) House numbers
And again believe it or not but according to various studies even and odd numbers get different prices among superstitious people.
The number 13 isn’t only unlucky on Fridays.
If you own property with the number 13 in the address, you could struggle to sell your property for the full asking price.
Although unlucky for sellers, the number 13 could be a lucky number for buyers who – like me – are not superstitious and looking for a good deal.
5. Nearby supermarkets
Homes situated near supermarkets provides a clear benefit – convenience. So being close to a supermarket such as Spar for example can immediately add value to your home. And if your home is situated within walking distance of a high-end supermarket such as Woolworths it could add even more value.
So the next time you go searching for a home in Langebaan, consider taking into account to how close it is to a supermarket.
6. Trees in the neighbourhood
A study done by Landscape and Urban Planning discovered that neighbourhood trees increased the value of a home.
According to the Council of Tree and Landscape Approvers in the US, planting a tree instantly adds between R15,000 to R100,000 to the value of your property.
In addition, the U.S. Department of Agriculture estimates that young trees have the same cooling effect as 10 room-size air conditioners running for 20 hours a day.
So whether the trees are in your yard or on your pavement, they’re a truly a valuable investment to consider.
Neighbourhood nuisances such as loud music, annoying pets and unkempt yards can hurt the value of your home. According to the Institute of property valuer, and the international association of real estate valuators – bad neighbours can cause your home value to drop by up to 10 percent.
On the other hand, if your house is in an area with considerate neighbours who take pride in their property, then you can relax knowing that will have a positive impact on the value of your property.
Okay those were 7 surprising factors but as I’m sure you know there are other factors as well. A lot has changed over the last year or so.
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