How Home Values Increase and Decrease

The housing market is one that experiences a lot of ups and downs and it is only normal that this is then reflected in the value of the homes as they increase and decrease. A misconception held by newbie homeowners as well as the more experienced real estate investors is that the property value of a proposed purchase is dependent on its functionality and style. This ideology held is highly misleading as these characteristics alone cannot be sufficient to bolster a property’s value. The most important thing when it comes to getting home values is to consider the attributes of the location and go from there.

Location

The location is an important key as there are locations that are highly sought after and some that most people would prefer to avoid. With this in mind, home values will get affected by the conceptions of individuals and can contribute to it increasing or decreasing. For homes close to the capital city of Washington, they attract a significant price tag which is always on the steady rise especially if they have access to the freeway. Also, locations like cul-de-sacs that are regarded as children friendly and traffic constraining have a high demand for them, especially when compared to those that are close to the road and are considered dangerous for young kids.

Land

Another factor to consider when determining how home values increase and decrease is the land on which they are built on. The land is an asset that constantly appreciates in value due to the fact that its supply is limited but its resources can be depleted. The demand for land is ever rising as the population of people in it continues to increase but there is no supply. Land on its own can be pretty valuable so building a house on it ups the value but if the home on which the land sits on is acquired for a purpose based solely on land use maybe for agricultural purposes and the land does not have the necessary nutrients, this can also lead to a decrease in the home value.

Neighborhood

The neighborhood in which the house is situated also contributes to the determination of the home value. The upscale neighborhoods are more or less the ones that have a neater approach to their layout as things that are considered as beauty detracting are often kept within the recesses of the home. These neighborhoods also limit the amount of construction work done there and as a result of this; the social, cultural and demographic attributes affect the value attached to the homes there.

Future prospects of the area of the home should also be considered as future development can change your property’s value for better or for worse. The homeowners must remain aware of the state of the amenities within the neighborhood as it can lead to the government making plans that involve construction work within the area. The government plans could involve schools, public infrastructure or hospitals that can influence the land value.

 

 

 

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