Choose wisely when you invest
There is nothing more thrilling than looking for your forever home. Yet, you need to be aware that there are certain aspects that will have a major effect on your property's resale value one day.
Various factors are considered when the listing price of a property gets determined.
Things such as the size of the property and stand, the condition of the property (interior and exterior) as well as the number of close-by amenities like schools, shopping centres, public transport services are all taken into account.
Even the current social, financial and political climate are considered, eventhough sellers have basically no control over these factors.
Although the above elements are important, one of the most important elements is probably comparative prices in the suburb or where the house is located.
This means comparing a particular property with other properties in the area to determine the correct selling price (the comparison is based on actual registration prices).
Your Property Professional will compare what other properties in the immediate vicinity sold for per square meter.
Value is based on three factors:
(1) what a buyer is willing to pay,
(2) what properties in the surrounding area sold for and
(3) whether it is a buyers' or sellers' market.
The real estate market works on a supply and demand basis: When the supply is low (of properties) and demand is high (up), prices increase.
In other words, sellers determine property prices when it is a sellers' market and buyers determine property prices when it is a buyers' market.
Yes, although an evaluation is just an estimation, the final figure is based on factual correct information.
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Author Machelene Joubert