Question

Please describe the three major factors that will most effect a property if you are valuing it for a personal home evaluation and explain why.

Answer 1

There are lots of factors that can impact the property valuation. But for home evaluation following major three factors can be considered:
1. Location: Location is very important thing that is considered while the property is valuating. Is it close to the city centre? Is it in a sought-after waterfront location? Is it close to public transport? Close to shops? To schools ? etc. bodies generally want to live close to where they work and where they enjoy their free time. so properties in these areas will be more expensive as the demand for those are would be high.

2. Interest Rate : When the Reserve Bank changes monetary policy, this can affect the value of property. The reserve bank rate will direct impact the loan rate from the banks or financial institutions. So, if the money become more expensive than the property demand will be lower. So, as simple as the property valuation would be done in according manner.

3. Economic Outlooks :The overall performance of the economy can also have an impact on the property market. If the economy is experiencing strong growth, employment and labour conditions are goods then more people can affordable to purchase a property, which leads to rising property values. Further more is, if economic conditions seems good and have expectation to be fine for coming year the raising demand for property will increase the property value.