Key Factors that Affect Real Estate Prices

When it comes to real estate prices, there are different methodologies for determining a property’s value. Regardless of whether individuals are buying or selling properties, people are always considering current property value. NYC real estate executive and founder of Assa Properties, Solly Assa explains that there are several factors that can shift property prices on both ends, either increasing or reducing prices. Major factors that determine the value of any kind of real estate property include general condition, location and the current status of real estate market. Here, Mr. Assa uncovers some of the most important factors affecting the property market that will almost certainly impact the price of your home.

Real estate represents a significant portion of most people's wealth, and this is especially true for many homeowners in the United States. Recent studies show that more than 65.2% of American families own their own primary residence. The real estate market size and scale make it an attractive and lucrative sector for many investors. In this article, Mr. Assa explains some of the main factors affecting the real estate market as well as the variety of investments available.

Location

We’ve all heard the phrase “location, location, location,” but what does this mean when it comes to property prices? According to Mr. Assa, location is the main factor for property price shift. Property prices are majorly influenced by location, whether the property is located in a well-developed neighborhood, commercial zone or in an upcoming zone that is witnessing development. Having easy access to amenities like shopping centers, healthcare facilities and entertainment offerings will shift the price towards the high end. Rougher areas with high crime rates don’t attract too many buyers and investors, which causes property price to fall.

Size and Layout

The age and size of your home compared to other available properties also plays a part in your home’s value, explains Mr. Assa. The larger the square footage of the house, the more expensive it can be. Additionally, the number of bedrooms largely influences a home’s value. So, a house with several bedrooms is more likely to have high curb appeal as opposed to a one bedroom unit. Interestingly enough, sometimes fewer but larger bedrooms tend to boost value. Moreover, an open plan design layout is often more appealing than a boxy space of the same size. Furthermore, a house which is newly built or is in immaculate condition holds highest market price than the one that needs remodeling. Historic homes or newly built, modern properties often reach higher prices than houses built somewhere in between. Potential buyers will take into account the condition of your home when deciding if they want to buy it and how much they are willing to pay for it.