Property valuation: These factors determine the price of your property

The domestic market

A key factor that helps determine property values is the state of the domestic market. For example, in the UK, property prices fell slightly in 2017 due to a market slowdown. On the other hand, property values in Germany have soared over the last 20 years due to changing cultural attitudes towards home ownership, where the number of buyers has grown.

When housing and house building is state-subsidised, this supply replenishment lowers average property values, while stagnation and rarity create higher demand. Lower policy rates from national banks help first-time buyers get a foot on the ladder, leading to a slight increase in house valuation due to higher market enthusiasm.

The local market

The regional market also represents a decisive factor in price determination. This is because aspects such as location, nearby amenities, schools, infrastructure as well as the regional labour market all come into play here. Since other properties in your area have these similar characteristics, they will also benefit from these value-adding features. However, this means that your community has its own ceiling price that your home can achieve through renovations and improvements. However, investment in the area can positively influence this ceiling price, as has been seen in the neighbourhoods around London's new Crossrail transport extension.

As rental income potential - which includes both residential and holiday lets - increases, so will property prices in the region.

Lover's properties: Uniqueness boosts property values

Supply and demand also work on a smaller scale in the real estate industry if your property is a connoisseur's property. Features such as home cinema rooms, swimming pools or historical decorations add an attractive luxury element to a property, especially as these are not the simplest bonus features on the market. Even something as simple as hardwood floors influences buyer interest; around 54% of American homebuyers would pay more for a property adorned with wood floors.

Maintain the property before assessing its value

Last but not least, the condition of a property also influences its value to a considerable extent. Therefore, it may be worthwhile to improve it before selling. For example, installing a new kitchen or bathroom suite can add between 2.5 and 5% to the value of your property. The front door can also have a big impact on value: a large, solid and welcoming front door can add an attractive amount of value at comparatively little cost.

For an accurate property valuation that takes into account all the factors mentioned here, it is advisable to enlist the help of a professional estate agent. We look forward to hearing from you!