The value of property whether investment or rental depends on several factors. For any buyer or seller, the cost of a home matters significantly. Of course, real estate involves big money and nobody is willing to face unforeseen events. Before investing in real estate, you should consider some factors to make the most of your real estate investments.
Real estate professionals can go a step further and examine the factors that can give you a better Return on Investment (ROI). Besides, they are aware of the recent changes in a neighborhood’s value and its price per square food.
When it comes to real estate investments, generating healthy gains is what most investors look forward to. Professionals help make the best decision regarding your home’s price by assessing the following factors.
Size of the House
For any property, size matters a lot. Let’s see this from a home buyer’s perspective. If someone is willing to purchase a 2000 square foot, will he settle for anything else? Maybe if the property has edge cutting features that can make him change his mind.
Further calculating the cost per square foot has its own complexity. A lot depends on the internal layout of your home. Even a 1000 square foot home might seem cramped for some buyers. If you are going forward to calculate cost per square foot on your own, will you consider balconies, storage space, terraces or patios as part of it? Confused right?
Well honestly, this seems like a job better left to real estate professionals as they put in their efforts and experience to deliver you the best results. Further, these professionals have their own network that helps evaluate homes that are on sale. They are also well aware of the current market situation and the prevailing market rates.
Whether your investment property is located in a downtown area, or in a remote part of the city, it matters. Every buyer has their own perception of the perfect house. Some may prefer living near a business center as it might be close to their workplace and others might settle for a calm or cozy residential area.
As an investor, you might lack the capability of convincing them as to why your property is what they should go for. Of course, it is likely that you have no experience in dealing with potential buyers and may risk turning them away.
Neighborhood security is becoming increasingly important for buyers. There are many instances where investors have lost their hard earned money just because of investing in an unsafe neighborhood.
For example, in Chicago, there are certain areas where nobody is willing to pay a decent price. This is because of high unemployment, increasing street crimes and low median income. Neighborhoods, such as Fuller Park, Riverdale, and Pullman are primary examples where median home value is $70,000 and still investors find it hard to cap their losses.
There are a few other factors that contribute to home price. Although size, security, and location play an important role for buyers, many also look for home’s interior and exterior, style, the ease of traveling to other parts of the city, amenities, and school district.
As in investor, you might have to put a lot of effort to convincing them. By hiring the services of a real estate professional you can make this job a lot easier.