A range of factors can influence the final selling price of a property, from marketing to the perfect target audience to an auctioneer that can help get the crowd properly fired up, or a real estate agent that knows how to negotiate.
However, the starting point for the end sale price is the property valuation, from which prospective buyers either choose to put their hat into the ring or walk away after a first glance.
Homeowners can often underestimate how much the value of a property can fluctuate, with a number of factors playing a role. Whether they are factors relating to the property itself or those of the street and wider surrounds, or decisions that homeowners themselves are making, there are lots of things that could be hurting the value of your property.
If you’re wondering why your property is getting low appraisals, these factors may be having an impact:
Badly maintained property
Even though our parents told us not to judge books by their covers, let’s be honest - most of us judge everything from books to properties by their covers. No matter the fact that it looks like a palace inside, a property that hasn’t been adequately maintained on the outside will without a doubt be valued less in the market’s eyes than one that has been kept up and made to look good.
This notion is especially accurate for properties that are in an area which, for the most part, is either unmaintained or beautifully kept. Appearance is everything and that knife cuts both ways, with the area the property is located in having just as much of a significant effect on property value.
If you own a property a suburb consistent with shabby, run down houses and gardens that have become their own independent ecosystems, no matter how much work and money you put in towards renovating and fixing up your property, the value could unlikely to change significantly due to the neighbouring properties.
Sporting Arenas or Entertainment Venues
Having a famous sports stadium right next door may seem like the dream for a lot of people, providing your neighbourhood with live music from your favourite bands free of charge, as well as being able to watch the footy from the balcony or keeping track of the score without having to watch. However, living close to a stadium can actually have a number of negative effects on value of your home.
For houses or apartments without soundproofing, living so close to a place where tens of thousands regularly congregate to make noise could make it difficult to get peace and quiet on a weekend. As well as noise complaints, living close to a stadium means a huge of amount of traffic, both on foot and on the roads, while violence or property damage may also be a problem.
While living next door to your footy team might be your dream, it could mean that the value of your home in the eyes of others is significantly lower than what you think it is.
Pubs and Clubs
Another thing that may influence the value of a property is what kind of facilities it is located next to. Some are looked upon by the average person as more favourable than others, with proximity to parks a plus. On the con side for many is a pub or club.
Living next door or up the road from a pub or club might not have too much of an impact on a younger, independent person who appreciates having a place close by to get a drink, but for a vast majority of homeowners living near a busy and late night pub is unthinkable.
From loud noise every night of the week to the occasional bout of drunken violence, potential property damage, living so close to a popular watering hole isn’t everybody’s cup of tea, particularly families with young children, which means a significant portion of the market is automatically closed off.
For more information on what your property is worth, take a look at our article.