In the real estate industry the most important or deciding factor is the location of a property. Even during a property valuation, location plays an important role in determining the value of the property.
Location plays an important role in the real estate valuation process as you can renovate the building or the house, but you cannot renovate the location of the property not until the entire locality gets upgraded which is a tedious and time taking process. Hence, it becomes even more important to look for the location of the property that you are investing in.
Here in this article we are going to understand the role of location in the property valuation process and other contributing factors. Let’s start with the basics.
Why Look for the Location?
As we have already mentioned, location plays an important role in the real estate market analysis process. Here is how we can establish the relation between the location and home values.
You recently invested in real estate which you got at a decent price, but now that you have shifted to the place, the grocery store, educational institution, healthcare centres, entertainment centres, and other basic amenities are almost an hour away. At this point, the property does not look that appealing.
Now in an alternative scenario, you have all the basic amenities, grocery stores, educational institutions, and healthcare facilities nearby your property. This sure does feel like a better option.
In the first scenario the property was valued at a lower price which initially made it look like a good deal, however, in the second scenario the property was a bit more expensive than the first one. But in the long run, the second property feels the best choice.
How Location Affects Property Valuation?
Now that you have decided to invest in a particular property, here are a few points that can help you better understand the effect of location on a real estate valuation.
No one wants to live in a bad neighbourhood. But if you look for a property in a bad neighbourhood, you will most likely get it at a lesser price. However, if you look for a property that is situated in a posh neighbourhood, the prices are more likely to be more.
2. Feasible transport
Commuting from your property to a different location requires a good and feasible transport system. If your property is established at a good or prime location, getting transport is not an issue.
3. Basic amenities
For basic amenities such as healthcare, and groceries, if you have to travel for about an hour, it is a time taking process. However, if your property is located with close proximity to such basic amenities it becomes convenient for you to go by your day.
4. Open space
In the current age each one of us is looking for a place that has enough open and green space to keep the place breathable. This further affects the property valuation as properties at such a location tend to be a bit on the higher end compared to the ones in the middle of the city cluttered with traffic, and chaos.
One of the major contributing factors is the safety and security of the property. This further contributes to the real estate valuation. If the property is located at a safe and secure location, the prices are going to differ as compared to the one located at a far distance where security can be an issue.
6. Resale and market value
If your property is located at a better location, the resale of the property is going to be easy and will have better market value as compared to the one with a distant location.
7. Property Valuation with Valoctiy
From the above listed factors it can be concluded that the location of a property is essential and major contributing factors towards the property valuation. Furthermore, it is important for you to get a property valuation done before investing via a professional appraisal.
With Valocity’s online platform you do not have to worry about investing in a property without proper property valuation. With its online platform you can get easy online real estate valuation and get the right market value for the property.
The best part about this platform is that it includes all the concerning factors during the real estate market analysis such as location, proximity to basic amenities, safety & security, and condition of the property as well.
Frequenlty Asked Questions
Why is location important in property valuation?
It is necessary to do property valuation as it provides you with a clear and better picture of the property based on the real market value and it takes into account all the concerning factors.
What does property valuation depend on?
Property valuation depends on the location of the property, easy transportation, proximity to basic amenities, safety & security.
What factors affect valuation?
Various factors such as condition of the property, location, safety & security, easy transportation, proximity to basic amenities affect property valuation.