Owning your dream home may be one of the most exciting times of your life. However, the journey has to start somewhere. Sometimes, you need to start with an equity lease. Here are a few things that could influence the property valuation.
1. Location
The location of your property could determine its worth. It is probably the most significant determinant of a property’s worth. In some instances, the area could be as important as the property itself.
Environmental factors that affect the value of a property include its proximity to affluent neighbourhoods, the nearby landmarks, and its proximity to amenities. Hospitals, shopping centers, schools, and other amenities improve the worth of a property.
If the property is in a location with a bad reputation, its value may be low. If, for example, the area is flood-prone or it has a high crime rate, its value is probably low. Responsible Equity Release could help you determine a property value based on its location.
2. Street Appeal
While you shouldn’t always judge a book by its cover, your house’s street has a lot to do with its value. Many people judge a house by the appeal of its street. Usually, older homes are less valuable than modern ones. Most people don’t want to live in a street whose homes seem to be run down even if they are pleasant inside.
3. School Zones
School zones could improve the value of your property. Everyone wants to live in an area that is close to high-performing schools. Areas that are close to school zones are considered family-friendly. Many people would happily pay a few extra dollars to live in a good school zone.
4. Usable Space and Home Size
When estimating the value of your home, size is one of the most significant elements. Generally, bigger properties are more valuable than smaller ones. You can estimate the value of your home in price per square feet.
The usable space in your home has a lot to do with its value. Pay attention to the attics, garages, and unfinished basements. Even though they aren’t counted as usable space, they can be critical.
5. Market Performance and Demand
Market prices are highly reliant on supply and demand. If the homes in a location have high demand, their value will increase. If, however, there is an oversupply of properties and not enough demand, the property value goes down.
The market performance fluctuates over the years, and properties that appear to be in demand at one point won’t necessarily be valuable later. Low market activity could boost your negotiating power significantly.
6. The Potential for Renovations
Home equity is one of the most innovative ways to remodel or refinance your home. The higher its potential for renovations, the more valuable it may be. If there is room for a pool, a different story, or one more bedroom, the property instantly becomes more attractive.
A well-thought-out renovation could make your home more functional and appealing.
7. Potential for Investment
If a home has high investment potential, it is more attractive and, therefore, more valuable. Investors are also drawn to locations whose value is expected to rise or expand in the future. You can estimate an area’s potential for investment through its amenities and development rate.
In conclusion, getting a home equity release may be a fantastic idea. When evaluating the value of property in an equity release, working with a professional is always a good idea. Independent valuers should be licensed and experienced. They will determine the value of your property based on its location, usable space, street appeal, and market performance.
