When it comes to the real estate market, the age-old saying “location, location, location” will forever hold its meaning. Location determines a variety of factors, such as your yearly costs, the convenience of living, the potential for investment, and much more. Savvy buyers and real estate investors understand this, making it a crucial part of the decision-making process that you cannot afford to overlook.
In this blog, we will explore some key elements that significantly impact property value. Whether you’re considering buying a home, investing in one, or you are simply curious about the real estate industry — understanding these location-based factors and their influence on price is essential.
Proximity
Properties located close to everyday amenities tend to have a higher property value. Easy access to schools, shopping centers, recreational facilities, and public transportation is considered highly desirable for potential buyers or tenants. People value convenience, and a property’s proximity to these amenities can enhance its attractiveness and overall value. As a seller, these are absolutely features that you should leverage when determining a price. As a buyer, weighing convenience and cost is necessary.
The quality of the neighbourhood is also important to take into consideration.
- Are the streets well taken care of?
- How close together are the homes?
- How big are the lots?
- What’s the level of privacy?
- Is there any light or noise pollution?
- Are there any parks, trails or playgrounds nearby?
- What are the crime rates?
Transportation
Transportation is a very important factor in the lives of many. The convenience of easy travel not only saves you time and reduces your overall stress level, but it also increases the overall value of your property. Sellers should leverage this, and buyers should assess their travel needs and what they may entail for their next home.
With the rise of remote employment, we’re seeing more and more people opt to work from their home, eliminating the need for a daily commute. However, this doesn’t remove the need for transportation convenience entirely. If you may suddenly need a hospital, it’s important to have an efficient plan in place to get you there.
Development
The promise of future development can quickly increase the value of nearby properties. The construction of new infrastructure, such as shopping centers, business parks, and upgrades to public transportation can attract more people to the area and increase demand for housing as time progresses. Being aware of planned developments is extremely advantageous in the long-term, as it lets you figure out where you want to go, and when you may want to sell in the future.
Questions?
Location-based factors play arguably the most significant role in determining the value of a property. Proximity to amenities, the quality of the neighborhood, transportation options, and anticipation of future development all contribute to the end cost. Understanding and considering these factors is essential for both buyers and sellers in making informed decisions about their future.
We understand that real estate can be stressful and time-consuming. If you need any help or have any questions about the process, don’t hesitate to reach out and ask our experienced team of knowledgeable professionals.