The way property is valued is changing.
While the traditional ways of pricing property remain, many buyers are now looking deeper. Natural progression? Of course, but you still need to be aware of how perceptions are shifting if you want stay ahead of the game, and today’s post will help you do just that.
Let’s take a look, shall we?
The traditional view of property value
In order to appreciate how some buyers are expanding their concept of property value, it's important to first understand its traditional framework. The conventional approach to determining property value is relatively straightforward and is typically governed by a set of common factors.
Buyers usually begin by considering the location of the property
As the old adage goes, 'location, location, location' is key, and it truly is a pivotal factor.
Buyers usually look for properties in desirable areas, typically characterised by their proximity to city centres, good schools, and other significant amenities such as local shops, parks, and restaurants.
Next, the size of the property and the number of rooms come into play.
Properties with larger floor plans and more rooms, especially bedrooms and bathrooms, often command higher prices. After all, more space often allows for more flexibility and comfort, which buyers value highly.
However, while these factors provide a useful starting point, they may not always offer a comprehensive view of a property's true value.
These traditional metrics can overlook crucial elements that could have a significant impact on the buyers’ quality of life in a property, and its potential for long-term appreciation. As we progress into an era where buyers' priorities are shifting, it is becoming increasingly clear that these conventional metrics of property value are just part of the larger picture.
In the following sections, we’ll explore additional factors that homebuyers should consider when assessing the value of a property.
Expanding the concept of property value
While the traditional metrics of location and size are essential, they don't necessarily capture the overall picture when it comes to a property's true worth.
An increasingly important aspect to consider is the concept of 'value for lifestyle'. Property should not just be seen as a building with a certain number of rooms or a specific size, but rather as a space that caters to individual lifestyle needs.
This can be especially valuable to those buyers who prioritise a work-from-home setup, requiring a dedicated office space, or those who value outdoor living, making a well-appointed garden a significant asset. For buyers who may be starting a family, a property near outstanding schools could have a considerable impact on their daily life and the home's future resale value.
Another key consideration is the property's potential for appreciation
Purchasing a property should ideally be viewed as a long-term investment, and the potential for the property to grow in value over time should not be overlooked.
This potential can be influenced by a variety of factors including:
- Future developments in the area
- The age of the property
- Its current condition
For example, a property located in an up-and-coming area with significant planned developments may offer a solid return on investment in the future.
Similarly, a well-maintained older property can carry historical value and charm that new builds often lack, potentially making it more appealing to certain buyers and therefore increasing its value.
Beyond bricks and mortar: The influence of sustainability, technology, and community on property values
In a world where sustainability, technology, and community play an ever-increasing role in our lives, it's only logical that these factors also impact property value. Recognising this is key to understanding the full value of a property, particularly in today's progressive property market.
A crucial element of modern property valuation is the growing emphasis on sustainability and green features.
With a rising global awareness of climate change, properties that boast sustainable features are becoming increasingly sought after. These features not only reduce carbon footprint but also offer long-term savings on utility bills, a fact that has not gone unnoticed by savvy buyers.
In addition to green features, advancements in technology are also shaping the way buyers evaluate property value.
High-speed internet connectivity is now seen as essential, especially with the rise of remote working. Meanwhile, smart home technologies, from heating and lighting controls to advanced security systems, add a level of comfort, efficiency, and safety that can increase a property's attractiveness.
These features, once considered luxuries, are fast becoming the norm, particularly among younger buyers who value the convenience and connectivity they offer.
Finally, the importance of local community and amenities cannot be understated when assessing property value.
While it's not a tangible feature of the property itself, the quality of local schools, the safety of the area, and the strength of community involvement can have a huge impact on how a property is valued.
Good transport links, proximity to local businesses, and easy access to leisure facilities can greatly enhance quality of life and contribute to a sense of belonging in an area, elements that are increasingly valued by today's home buyers.
Taken together, sustainable features, technological advancements, and the quality of the local community and amenities offer a more complete and nuanced understanding of property value. They signal a shift away from focusing solely on tangible, immediate aspects of a property, towards a broader view that encompasses long-term sustainability, quality of life, and future growth.
These expanded considerations can help buyers make a more informed decision and a rewarding property investment, and sellers would be wise to take note, too.
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If you’re thinking of getting into the property market in or around East London and West Essex, whether you’re a buyer, seller, landlord, or tenant, Petty’s should be at the top of your reputable estate agents list. Give our friendly team a call today to find out why we’ve been Wanstead’s number-one choice for over a hundred years.