The value and the worth of your house/home are based on what the buyers in the market are willing to pay and every buyer is different from the other. For example, one buyer would consider the infrastructure and interior and exterior condition of your home whereas another buyer would consider the ease of mobility, easy access to health facilities, good educational institutes, and job opportunities, etc.
Therefore, here in this article, we have designed an outline of factors that significantly affects and influences the value and worth of your home.
Neighborhood Comps
The key factor that immensely influences the worth of your house or residential property is the sale prices at which the other similar residential properties are being sold within your neighborhood. Such comparable homes are known as ‘COMPS’. Then whether a market competitive analysis is being done by a real estate agent, be it a home appraisal or an open door evaluation, the majority of the real estate experts would rely on COMPS to set the estimated price worth of your home or residential property.
The best advice to determine your COMPS is:
Recency – Look out for the residential property that was recently sold out. The more recent, the better.
Similar Features – When determining a COMP, compare the features and facilities that are similarities of both the houses such as whether the houses are two–story or ranch. A number of bedrooms and baths. How old is the construction etc?
Mobility – While determining COMPS it’s better that the comparison is made with residential properties that are present in the same subdivision as your home so that a fair comparison is made. If the comparison is made with a residential property from a different subdivision then it won’t be a fair comparison as the ease of mobility, distance to school, hospital or commercial hubs and housing authority rules all would be different.
Location – Also when making COMPS remember to keep in mind the unique features of your home regarding location. For example, if your house is located near a motorway, has access to international highways, or has great scenic views along with world-class smart features then the COMPS should be made with houses that have similar locations, features, and facilities.
For example, according to the Blue World City map, The Life Residencia Islamabad and Capital Smart City Islamabad both are located in the neighboring vicinity of Blue World City Islamabad. Therefore, houses located in Blue World City, can easily consider the houses present in The Life Residencia and Capital Smart City Islamabad houses as a COMP.
Location
The location of your home or residential real estate property should be an ideal location. Here, an ideal location is that which offers you easy access to either our parent’s house, health facilities, or educational institutes as well. Whereas, an appraiser or a buyer considers the location of your real estate property based on the following three criteria: quality educational facilities in the locality, hassle-free access to commercial hubs, recreational activities, and most importantly employment opportunities within the location.
In short, your residential real estate property’s worth is determined by the location where your property is present. Locations are the key main significant influencer as to why some properties have higher rates than others. Moreover, due to the prime location if the residential real estate has access to international trade routes, national highways, utility lines, and public transit are a few features and qualities to name that proactively affects the cost. Hence, when it comes to determining the value of any residential real estate property, the location of the property is significantly important that at times the buyers ignore the interior/exterior designs, size, and even the maintenance condition of your home.
The Life Residencia and Capital Smart City Islamabad, according to the Blue World City map, enjoys a prime location adjacent to the new Islamabad International Airport, Lahore – Islamabad Motorway along with access to the CPEC route.
Home Size and Usable Space
Another critically important aspect for determining the worth and value of your residential property is the size and space of your home. The bigger the home the greater the value. Usually, a residential real estate property’s coarsely estimated value is determined by using the formula cost per square foot. Here, the sale cost of the residential property is divided by the square footage of the residential property.
Other than this, livable spaces such as bedrooms and bathrooms are what attract appraisers and buyers. Bedrooms and bathrooms are the most greatly treasured features of a residential property. The greater the number of bedrooms and bathrooms the greater the value of your residential property. However, such traditions and trends are only specific to certain areas and localities.
In the on-going mega real estate projects such as The Life Residencia and Capital Smart City Islamabad or Blue World City Islamabad, their developmental masterplans highlight that the houses constructed would be according to modern needs and requirements meaning that houses would be constructed smartly yet effectively usable space and size.
Updates and Upgrades
To further enhance the worth and value of your residential real estate property it’s essential that if your house is an old construction having outdated features then by updating and upgrading your house you can improve and improvise the value of your residential property. However, an important thing that is to be highlighted here is that not all home renovation and enhancement projects are equally created.
If a swimming pool or wooden floors are added to an already highly valuable residential property would further increase the market value of the residential property. Whereas, if a kitchen remodeling is done or a bathroom is further added into a less valuable property, then by doing so the market cost value is highly increased on a real estate property.
Conclusion
In a nutshell, it is necessary to educate yourself regarding the components that determine the value of your house in order to avoid any blunders or inaccuracies while selling your home. Furthermore, by using the above checklist while generating an estimated price of your residential real estate property you’ll be able to attract and entice only the buyers who would be actually interested in buying your property and would save you from wasting your resources.
