If you’re gearing up to sell your home, you’re probably wondering, ‘What factors affect property value’? While you probably already know that factors like land size, location, and the state of the property market have a big impact on property values, you might be surprised to know that some fringe elements can increase or decrease the value of your bricks and mortar by tens of thousands of dollars.
So, what are some of those elements? Find out below.
1. Street (name) cred
What’s in a name? As it turns out, quite a lot. Research conducted by NeedaProperty.com found that homes on streets with rude-sounding names like Crotch Crescent, Turkey Cock Lane, Bell End and The Knob were worth 22% less on average than comparable streets. On the flipside, it seems there are bargains to be had for buyers who don’t mind a bit of innuendo.
2. School zones
Selling a home close to a high-performing school can give your property value a significant boost. Domain’s School Zones Report found that nationally, the top 10 growth rates around top schools were up between 18-41% in 2016. In the same period, Sydney’s house price growth as a whole was around 1.5% and Melbourne around 7.3%.
3. Your suburb’s track record
Owning property in a suburb with a high crime or unemployment rate doesn’t necessarily detract from your property’s value. However, if you live near the scene of a highly publicised crime, like a murder, the value of your property could fall by 3.9% in the year following the murder, according to a study by the University of Technology Sydney (UTS). In other words, it’s best to wait until the media frenzy subsided before putting your property on the market.
4. Street trees
The effect of landscaping on property value has been documented, but did you know that living on a tree-lined street can also positively impact the value of your home? Research into the effect of street trees on property value found that trees on the street verge increases median property prices by about $16,889.
5. Public transport
Having good public transport services nearby can increase the value of your home thanks to heightened demand for connectivity and convenient commute times. On the other hand, living too close to public transport can actually decrease the value of your property. In London, for example, being within 500m of a Tube station can increase property values by 10.5%, but move 250m further down the road sees that figure drop to 7.6%.
6. “Bad” taste
Perceived “bad” taste can knock 5-10% off the value of your property, according to experts. So, while you might love that floral wallpaper or cork flooring, sticking to neutral interior design when selling your home is your best bet for securing a favourable sale price.
7. Storage space
Having a garage or a dedicated storage cage can add up to $8000 per square metre in value. This trend is even more pronounced for apartments, where space is limited and storage options are often few and far between.
In the UK, living near a high-end supermarket such as Waitrose can help add over £36,000 (AUD$64,477) to a property price typically – while living near any national supermarket may boost a home's value by around £22,000. Assuming these figures translate to the Australian market, living near a Coles or Woolies could do wonders for the value of your property.
9. The number 13
Superstition is the cause of bad luck for owners of house number 13. UK research reveals that owners of a number 13 property will sell for approximately £8,974 (AUD$16,072) less than their neighbours. Likewise, almost a third of buyers said they would try to avoid buying a property at number 13.
10. Renovation potential
Common wisdom says that a renovated property will always sell at a higher price than an older property, but did you know that having a fixer-upper can actually be a good thing? If there’s scope for a buyer to improve a property, the value of that property may increase. This is especially the case for properties with generous land size that would allow for additions like a swimming pool, an extension or an outdoor patio.
11. Cheap renovations
Although quality renovations can add value to a property, cheap or poorly executed upgrades can actually have the opposite effect. Before you undertake any major renovation, make sure your local council approves your plans so that a building inspection doesn’t reveal any illegalities, which can delay your project and potentially decrease the value of your home. Poor workmanship is a big turn-offs for buyers, so make sure any issues rectified before putting your home on the market.
12. Energy efficiency
These days, more and more people are recognising the benefits of investing in energy efficient homes to not only reduce their energy bills but also their carbon footprint. Features like solar panels, double glazed windows, insulation and even energy-efficient appliances can boost a property’s value, especially in areas where cooling or heating are needed throughout the year.
13. Home loan interest rates
Home loan interest rates can play a big role in how much prospective buyers are willing to pay for a property. Just a small rate hike can equate to hundreds of dollars extra in monthly mortgage repayments, which means people may have tighter budgets when looking for a home – and that can equate to decreased property values.
If you’re thinking about selling your home, see why Upside has some of the most highly rated real estate agents in Australia. Start your journey with a free property appraisal.