LOCATION, LOCATION, LOCATION - PRIME VS. UNDESIRABLE
When investing in residential real estate, a home buyer would ideally look for something that would first and foremost suit their needs, however, it’s possible to find the right home in the wrong location. Location is the number one rule in real estate and a vital selling point that could make or break a deal, hence you’ve probably heard realtors say it three times for added emphasis.
A property’s location can boost, maintain or knock its value depending on its surroundings, and that is why it’s the most important influencing factor when determining a home’s worth, both at present and for future reference. For example, if the home is within close proximity to amenities that homeowners would want convenient access to, such as a beach, shopping malls, healthcare facilities, and boast scenic views, then it’s very likely that the owner’s asking price would be significantly higher than the home’s actual value. Several factors as such define locations as prime ones, whereas negative factors such as high volumes of traffic around noisy industrial areas riddled with crime are undesirable locations. In such cases, a potential buyer may want to negotiate the price or make an offer that is significantly lower than the home’s value.
Homebuyers with families are very mindful of their children’s learning experience and won’t mind spending more on a home situated within a desirable school district that attracts them. Hence, even if you don’t have children going to school and never plan to, consider the return on investment if you sell your home at a later stage.
Properties situated within reasonable distance from public transportation networks such as a train/bus station or even an airport, would make your home an asset that would most definitely appreciate in value as most people would appreciate safer, efficient and cheaper commutes such as the Gautrain.
Homes that have surrounding recreational areas and scenic views such as those bordering the beach, rivers, lakes or parks hold their value and often sell much faster for a relatively higher price. Homes that have the advantage of overlooking beaches, mountains and racecourses also hold their respective values.
Conforming areas can be influential to prospective buyers, as they tend to gravitate towards homes that reflect the similar values that the homeowners share. Homebuyers generally prefer to be surrounded by similar properties in terms of age and architecture.
An economically stable neighbourhood is particularly attractive to prospects who intend on maintaining and possibly boosting the value of their homes as these areas have endured one or several downfalls of the economy.
Prime location on the street may be an influential factor to homebuyers who prefer to be in the middle of the road, making them feel somewhat less of a target to criminals, as opposed to houses on the corners or ends of the road where neighbours are less likely to notice any suspicious activity.
Undesirable locations are much easier to pinpoint as opposed to prime locations, and these factors can negatively impact the purchase decision of potential buyers more easily.
Untidy neighbourhoods are extremely repulsive. Neighbors who don’t take care of their home or yard show no pride of ownership and cause prospective buyers and investors to think twice before making a purchase in the area, as the surrounding properties can influence the value of the one that interests them.
Commercial and industrial areas are not attractive to prospects that want to buy residential real estate, as it doesn’t compliment the characteristic of a peaceful neighbourhood. These areas are also generally very noisy, making it difficult to get a peaceful night’s sleep – other noisy locations are those close to railways, freeways or under flight paths. There are also high amounts of traffic congestion in commercial and industrial areas throughout the day, and people loitering can make it difficult to determine suspicious activity.
Safety is important, and although homeowners take effective measures in installing security and surveillance systems, they want to feel as if the neighbourhood they’re moving into is safe and does not have a high crime rate.
It’s imperative to understand the influential power of location. As beautiful as your home may be, its location can either make you a huge profit or cause you a significant loss. Likewise, if you’re buying a home, you can either save a fortune, or have to fork out a substantial difference compared to what you offered. Dormehl Phalane Property Group offers helpful tips and advice to homeowners and prospective buyers. List your home with us, or let us help you find an ideal home in a suitable location.
Author: Dormehl Phalane Property Group