Real estate market prices are influenced by a set of forces. You can look at the factors that influence real estate values as two sets: the Micro Factors and the Macro Factors. Basically, the Micro are things more specific to your property, and Macro are the things that are more general to the market. To make an informed decision when selling or buying properties, it’s essential to understand both micro and macro factors that can affect real estate market pricing. Today, let’s look at the Micro forces, and next time we’ll address the larger Macro influences.
Micro Factors that Influence Real Estate Pricing
The market gives a lower value to any layout that limits the owner from fully utilizing space. A property that is square-floored can be more easily furnished and planned compared to those with round walls, strange shaped halls or rooms, or protruding corners.
We place a higher value on building styles that aren’t common or often imitated. If the architect made some unusually beautiful choices, that will surely influence the price of the property. Basically, there are points to be won for uniqueness. Although there are still points to be lost for poor layout, which unique architectural choices can sometimes create. Architectural points of beauty that don’t interrupt the flow of the living space are best.
An environment with high vacancy levels creates dropping real estate prices. This boosts the confidence of both the buyers and investors. On the other hand, low vacancy levels are appealing to first time home buyers, and ideal for sellers because real estate prices go up with limited inventory (low vacancy).
Location and Amenities
Homes that have easy access to major transportation routes and basic amenities nearby have higher values. Amenities like parks, food centers, hospitals, childcare, public transportation, shopping malls and more make a location attractive. Any property with great amenities close or being built nearby soon costs more than one with distance to travel for groceries and entertainment.
Landscape Design and Yard Space
Don’t forget the importance of the outdoor spaces. A landscape with wide open areas brings a higher value than uneven-shaped properties, and what you do with the open space counts. Mature trees and established patio, lawn, and garden areas bring up home values. And of course, properties with a beautiful vistas are generally higher in value.
While these things are mostly outside your control, they are influenceable. Being aware of them lets you make better decisions about buying and selling. Should you sell before they announce the plans for a new mall? Wait to buy until students leave after graduation, creating vacancies in rental properties for sale? Give your landscaping another year to mature and show off it’s best features?
For any questions about buying or selling your home or rental property, call the Laura Wucher Team and we’ll work with you to get the best possible outcomes.