House prices are constantly changing and it can be difficult to understand why. Several key factors affect house prices; some of these are within your control, whilst others are due to much wider factors, like the state of the economy.
Read on to find out how you can get the best price for your property, and talk to our expert team if you have any questions about your home.
What affects house prices?
Various things affect how much your house is worth, and these include:
Location
This is one of the most important factors when it comes to pricing homes; desirable areas attract higher prices because more people want to live there.
Suburban locations with good schools, good transport links, access to shopping, entertainment, and local jobs, are likely to have higher house prices.
City centre locations can also attract higher prices. This is especially true of London (as it’s seen as a global city) but it’s also true of cities like Manchester, Birmingham and Leeds. City centres have plenty of well-paid jobs available and they’re busy, exciting places to live in, so this increases property prices.
Supply and demand
This is a factor that’s outside of your control, but it can guide you on when might be a good time to sell. If there are more buyers than houses available, then house prices will go up.
The wider economy
The economy plays a big part in the property market, with things such as interest rates having a strong effect on house prices.
If interest rates are low, it makes it easier for more people to borrow money to buy a house; the lower the interest rate, the lower the cost of the mortgage. This means more people can afford mortgages, so there’s an increased demand for property, and this in turn raises house prices.
If the economy is struggling and unemployment is rising, there’ll be less demand for houses and this will bring down their price.
The property itself
The size and type of your property will impact its value, and so will the state that it’s in. A well-maintained home, that’s clean and nicely decorated will get a better price than one that’s run down and needs a lot of work and repairs etc.
The potential to extend/renovate
If there’s additional space around your property, this could make your property more attractive to buyers and nudge the price up. Some buyers or investors look for homes where they can increase floor space by adding more living areas, bedrooms and bathrooms. This makes it a more spacious home to live in, and it will increase how much the house is worth when it comes to selling.
What reduces property value?
If you’re thinking of selling your home, you’ll want to get the best price possible for it. To make this happen there are certain things you can tackle to make your house worth more.
Outdated features
Outdated bathrooms and kitchens stand out to some buyers, and they can make your house worth less. Buyers like to imagine themselves living in the home they’re viewing, and if it’s very outdated, they won’t want to live there. Some buyers don’t want to have to redo rooms after moving in; they’ll be thinking about the extra cost it involves, and it might feel overwhelming on top of the costs of buying the property.
If you decide to update features like the bathroom or kitchen before selling, then aim for something simple, modern and neutral. This will appeal to the majority of buyers out there.
Property market conditions
Market conditions aren’t within your control, but it’s worth keeping an eye on what’s happening and how it affects your property’s current value. High interest rates will always impact house prices because they lead to higher mortgage payments. This means that many people won’t be able to enter the housing market (or move within it) so they’ll wait until things improve.
Fewer buyers
Sometimes specific areas simply have fewer buyers for a while, and this can be for a variety of reasons. If this is the case, the reduced demand will bring down how much your house is worth. This will likely change, so keep in touch with your local estate agent and they’ll let you know when the local market starts to shift again.
How to boost your property’s value
The good news is that if you want to boost your property’s value, there are many things that you can do before putting it on the market. We’re always here to help with ideas and advice. Have a read and contact us if you’d like to talk about how to increase your property’s value.
Improve kerb appeal
First impressions matter, and the outside of your home is often the first thing that potential buyers see. Any damage to the exterior gives viewers a bad impression of your home, and they may not even bother to look inside. Broken gutters, cracked walls, or outdated, worn window fittings are all very off-putting to viewers.
Your garden is an important part of your home when selling. If your front garden is overgrown, or your fences are falling, this will bring down your property valuation, and buyers may see your home in a negative light.
Spend some time improving your garden area:
- Clear or prune overgrown plants and bushes
- Repair and paint fences
- Pressure wash pathways
- Add a few pots of bright flowers
- Tidy/move the bin area
- Sweep fallen leaves
- Mow the grass
The condition of your home
If people are faced with broken cupboards and cracked walls when viewing your home it can be very off-putting. Fixing maintenance issues will make your house worth more, and it’s important that it’s in a good state of repair when people are viewing it.
Freshen up the paint and décor within your home so that it feels clean, fresh and airy. Try to tone down anything outdated or too big and bright.
Spend time cleaning everything thoroughly. Wash curtains and clean carpets if you need to, so that your home smells amazing, and is as fresh and welcoming as you can make it.
Renovations or upgrades
Investing in renovations and upgrading outdated features will always help increase your property’s value. Creating extra bedrooms and/or bathrooms by renovating or extending your property will create more usable spaces, and this is always appealing to buyers. However, it’s worth talking to an experienced, local estate agent before investing in these changes. They’ll be able to advise you about how much the alterations could add to your house valuation, and this will help you decide whether the work is worth doing. It’ll also help you to set your budgets for any changes you go ahead with.
Location
The location of a property has a huge impact on its valuation. If you’re looking to buy a home, think about the location you want to invest in, as well as live in. Areas with benefits such as great transport links and schools, can make your day-to-day life much easier, whilst also helping to maintain the value of your property. If you’re not sure where to start when thinking about location, we’re here to help. Contact your local Hunters team and we’ll talk you through your options, with no obligation on your part.
Energy saving features
Improving the energy efficiency of your home is always a good investment. The cost of gas and electricity keeps on rising, so anything you can do to decrease these costs will be appealing to buyers. You could consider investing in effective insulation, upgrading your windows (if needed), smart heating solutions, and energy-efficient lighting.
Find out your home’s value
Whatever your plans, having an accurate valuation figure for your home is important. It can help you decide whether to renovate, invest in upgrades, or whether it’s time to get your house on the market.
There are several different ways to find out the value of your home:
An instant online valuation
Use a free online property valuation tool to get an immediate answer about how much your home is worth. Your online valuation will give you an estimate to work with, which is useful if you’re in the early stages of making plans to move or renovate.
If you get an instant free property valuation, don’t be too disheartened if it’s not the figure you want. Online valuations are based on things such as the selling price of similar-sized properties in your area. However, no one’s seen your home to weigh up all the factors that could boost your property’s value, such as any upgrades you’ve done etc.
Get an instant online estimate now, but if you need a more detailed house valuation, talk to your local Hunters estate agent and they’ll be happy to help.
Local estate agents
The best way to know how much you could sell your home for is to talk to your local, experienced estate agent. They know your area incredibly well, and they’ll view your home in detail to weigh up exactly how much you can put it on the market for. They’ll also show you examples of similar properties they’ve sold in the area recently, so it’ll be a truly informed and accurate valuation figure for you to work with.
We provide everyone with a free property valuation, and there’s no obligation to move forward with a sale afterwards. It’s a great way to have time with an expert to ask any questions you have, and to get ideas about what you could do to increase your property’s value.
Professional property valuations
Professional valuers are fully qualified and regulated surveyors who specialise in property. If you buy a house using a mortgage, your lender will send around a professional valuer to make sure the property is worth the amount you want to pay for it. Professional valuers provide a full property valuation report that details exactly how they’ve come to the valuation figure they provided.
FAQs about house prices
What factors affect house prices?
House prices are determined by several factors; some are outside of your control (like interest rates) but some are within your control (like the condition of your home).
The main factors that affect house prices are:
- Location
- Property size and type
- Condition of the property
- Interest rates
- Mortgage availability
- The wider economy
- Government housing policies
- Current supply and demand of properties
How much is my house worth?
When making decisions about your home, it’s important to know how much it’s worth in the current climate. Look at similar properties in your local area and see how much they’ve sold for. You can also get an instant estimate by using an online house valuation tool. However, to get an in-depth assessment of your home, ask your local estate agent to come and view your property. They’ll give you a free property valuation, and provide any advice you might need moving forwards.
What’s an online house valuation tool?
It’s a house price calculator that can give you an instant estimate of how much your home is worth. It’s quick and easy to use, and it gives you a free property valuation figure instantly.
Online house valuation tools are really useful if you’re considering your options and need a rough estimate to work with. Use our instant online valuation tool now to see how much your property could sell for. If you’d like a more detailed valuation, then contact us and we’ll be happy to come and visit you.
Once you know the current value of your home, you can consider your options. If you’re thinking about selling and moving to a bigger house, then you may need to consider your mortgage. Use our mortgage finder now to look at some of the mortgage options that are available to you at the moment. If you have any questions, then don’t hesitate to contact your local Hunters team – we look forward to hearing from you.
