How do you calculate the value of a home? 10 determining factors

The price of a property depends on numerous variables that can contribute to increasing the value of the property and its desirability. Let's find out what they are

Is a house in the center or an attic with a terrace on the outskirts more valuable? With the same historical and artistic value, various variables generally affect real estate estimates, such as location, amenities, width, finishes and much more.

For this reason, it is good to rely on a specialized real estate agency such as Engel & Volkers Venice that can arrive at an accurate and reliable evaluation.

So how do you calculate the value of a house? Here are the 10 factors to consider.

1. CONDITIONS OF THE PROPERTY

As with everything, even when looking for a house to buy, the eye wants its part. A property in good condition or a recently renovated apartment will clearly be more attractive to a potential buyer.

One of the main factors determining the price of a house is, without a doubt, the state of the property and its condition at the time of sale. For this reason, one of the secrets to increasing the value of a property is to improve its appearance, carrying out all the necessary repairs, renovations, maintenance and repainting works to give the property a fresh and well-kept appearance.

The extra tip? Turn to home staging professionals who, with the right mix of interior design and marketing skills, can help further increase the value of your property, making it even more desirable.

2. TOTAL SURFACE

As obvious as it may seem, square footage is one of the main variables that determine the price of a home. The latter, in fact, is largely made up of the cost per square meter which varies, even considerably, from city to city and from neighborhood to neighborhood.

The calculation of the total surface area of the property, including any appurtenances, also contributes to the calculation of the cadastral income which, in turn, represents the starting point for the calculation of property taxes and registration tax. Since this is a very delicate matter, the determination of this value is usually entrusted to specialized real estate agencies, thus avoiding harmful errors and erroneous estimates.

3. NUMBER OF ROOMS AND DIVISION

One of the lessons of the pandemic is the importance of domestic space. The latter has taken on a preponderant role in determining the quality of life in everyday living. Especially when you cannot count on large sizes, the number of rooms and the internal subdivision of the environment can affect the value of a property. The ability to better organize the spaces, to tear down walls or erect new ones, or even to exploit the height to create mezzanines can certainly make the difference when you want to obtain, for example, a well-defined living area, a room for children or a corner equipped for home working.

4. LOCATION OF THE PROPERTY

Although with the due differences from city to city, when talking about how to calculate the value of a house, one cannot fail to refer to the location of the property.

A position in the historic center is often synonymous with properties of historical and artistic value, in others it could mean houses in a poor state of conservation. But other factors may also affect the value of the property, such as proximity to services (schools, universities, supermarkets, shops, shopping centers, hospitals, railway stations, etc.), to places of artistic and cultural interest, or the fact that the area is well served by public transport or near parks and other green spaces.

Even more decisive will be the fact that the property arises within residential, quiet and elegant contexts or in social housing buildings or in run-down areas that would need redevelopment.

5. ORIENTATION, VIEW AND EXPOSURE

What are two of the most requested features for a home? Brightness and panoramic view. This is true not only in splendid cities like Venice. Opening the window and finding yourself in front of a beautiful landscape or even simply having the opportunity to let your gaze run without encountering expanses of concrete is a priceless value for a property to say the least.

Add to this the importance of a correct orientation of the property which can mean many benefits in terms of brightness and heat. In sustainable construction, for example, more and more attention is paid to this variable to obtain advantages in terms of energy efficiency and reduction of consumption.

What is the best orientation for a house? The southern exposure, which favors a greater number of hours of natural light and more heat during the cold season.

6. COMMON SPACES QUALITY

Even the most beautiful and luxurious apartment can risk losing a lot of appeal to potential buyers if the latter is welcomed by a building with a dilapidated facade, without a lift and other services or, even worse, dirty and in poor condition.

In fact, the quality of the common spaces contributes to the prestige or, on the contrary, to the bad reputation of a property. The fact that the house is located in a well-kept, clean, recently built or renovated condominium, even better if equipped with a concierge and other condominium spaces, will certainly help to increase the market value of the property and attract possible buyers.

7. PRESENCE OF OUTDOOR SPACES 

Whether it is a balcony, a terrace or, even better, a small garden, the presence of an outdoor space is certainly one of the decisive factors in determining the value of a house. Having access to the outside or having spaces in the open air not only affects the brightness and healthiness of the home, but also the quality of life of those who live there.

All without counting the priceless advantage of being able to enjoy moments of leisure and relaxation outdoors during the summer, making the outdoor spaces welcoming and habitable for themselves and their guests.

8. ENERGY EFFICIENCY

Building sustainability-oriented buildings is much more than an industry trend. Attention to the issues of reducing environmental impact and consumption is an increasingly felt issue, as well as a necessity.

For this reason, owning a newly built or renovated house according to energy efficiency criteria certainly represents a competitive advantage for those who want to sell a house. At the same time it increasingly represents a criterion of choice for those who want to buy a property as their first home or as a safe investment for the future.

9. PRECIOUS FINISHES AND SMART EQUIPMENT

With the same good structural conditions and position, another of the variables that affect the value of the property and its selling price is certainly the presence of fine finishes. Buyers are easily attracted by the presence of fine flooring such as parquet or marble, as well as by the presence of new and latest generation windows capable of ensuring good thermal insulation, without requiring additional work or maintenance.

The same applies to the presence of technological equipment such as burglar alarm systems and home automation systems that transform a simple home into a smart home.

10. SERVICES AND EQUIPMENT

When you ask an expert how to calculate the value of a house, he will certainly also refer to the presence of services and other equipment of the property. We are not just talking about appliances such as attics, cellars, garages, outbuildings and, why not, swimming pools, but also in the presence of fine furnishings.

A few examples? An elegant fireplace or a custom built built-in kitchen or, again, a very desirable designer walk-in closet. Try to highlight the presence of these extras and your home will be even more in demand.

What are you waiting for? Talk to your Engel & Volkers advisor and find out how to increase the value of your property.