What factors give value to a home?
When requesting a property appraisal, a frequently asked question is what elements make a home cost more or less?
The factors that give value to a home are multiple and different depending on the particularities of the market in which the property is located. However, there are some parameters that are generic and that provide sufficient information to value the property and that influence the appraisal, a necessary procedure to contract a mortgage. What are the aspects that are taken into account when appraising a property?
The geographical location of the home entails its belonging to a certain price scale. And it is that the different areas have different price levels depending, above all, on the demand that exists. It is important to bear in mind that each location has some services (schools, health centers, public transport, etc.) that determine the value of the property.
The surface is the second factor to consider when appraising a home. That is why it is so important to carry out an accurate measurement of how much space the property occupies, especially to solve outdated errors that both the deeds and the data from the Cadastre may contain.
It is essential to carry out an accurate measurement of the property, especially to solve the errors that both the deeds and the Cadastre may contain.
It is the appraiser himself who is in charge of carrying out this measurement and providing a scale plan of the house as part of the accompanying documentation, they assure from the Spanish Association of Value Analysis (AEV). In this sense, it is also necessary to take into account that usually the larger the surface of a home, the lower its unit value, that is, the price of each square meter.
State of conservation
Another of the key characteristics to value a home is its age and, especially, its state of conservation.
Proper maintenance of materials and facilities, as well as ensuring that the property is clean and ventilated, are important aspects for a valuation.
The quality of the construction also adds value to the property; the better the materials and facilities, the higher its rating.
The common areas of the building, such as the portal, the gardens or the sports areas, are other factors that can tip the balance and that differentiate the property subject to appraisal with respect to other properties.
It is important to know that in each area there may be special parameters that are most sought after by the demand that is concentrated in that location. For example, in one location the fact that the house has a swimming pool may be more valuable to buyers and in another, the availability of a terrace.
In addition, if it is a building, other points that the appraiser will take into account are the following: if it has an elevator; the floor on which the house is located, since the higher the building, the more light and less noise it will receive; orientation, which can lead to greater energy savings; and the views.
Each market has its own peculiarities, which is why valuing a home is a complex process involving a large number of variables and for which in-depth knowledge is essential. In any case, when it comes to valuing the elements of a home, it is key to have the professional advice of a trusted expert that advises and resolves any questions that may arise during the process.
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