Any property's price, condition, and size can change. The only thing that cannot is the property's location. Here are some thoughts worth considering as a real estate agent regarding the location.
How Does Location Impact Property Value?
Location has the most significant influence on property value. A home's location ensures accessibility to factors such as downtown areas, transportation hubs, shopping centers, and schools. The closer a property is to these "hotspots," the better its location is considered, and the more likely it will appreciate in the future. Additionally, the more attractive the location, the easier it is to rent or sell a property.
Demand and supply are two factors that will always play a role in property valuation. Housing availability is limited in more enticing areas due to the number of properties within that environment. A good location can generate interest, interest generates demand, and demand raises property prices.
What Makes a Location More Expensive?
In more expensive property areas, demand steadily grows, but regulations restricting available space and/or construction might limit supply. There are factors that typically increase demand and elevate prices.
One such factor includes attractive geographical features such as lakes, rivers, or tourist attractions. Picturesque landscapes not only attract homebuyers but tourists as well, creating greater competition for properties among owners and investors.
Proximity to schools can also elevate prices, especially institutions offering high-quality education.
Additionally, a location's development plays a role. Places with good infrastructure, entertainment options, and safety tend to attract buyers.
Lastly, if properties struggle to keep up with demand due to space constraints or other issues, prices will rise.
Cheaper Property Locations
Naturally, there are less expensive property locations where prices can fall well below average. In smaller towns without tourist attractions or natural features like lakes, rivers, or scenic spots, demand for housing will be lower.
Properties farther away from city centers are more affordable. However, many buyers or renters prefer proximity to downtown and hubs. Cheaper buildings are best targeted at those looking to move away from the city for a rural lifestyle.
How to Sell Property in Less Favorable Areas?
In every country, there are less promising locations. If you have to sell or rent property in such an area, realize that it won’t sell as quickly as a house or apartment in an attractive location.
Being aware of pricing and making a suitable offer in relation to value is essential.
It’s crucial to be honest with potential buyers. Highlight the property's positives while remaining realistic.
Investing time and effort into a marketing plan to attract potential buyers is beneficial.
Our previous article discussed how to make a real estate agent more effective. Click here for answers.
What's More Important: Location or the House?
Answering this question, especially for first-time homebuyers, can be challenging. However, when it comes to a property's value, the answer is straightforward: location. Changes can always be made to a house or apartment, but not to the surroundings. Nevertheless, it's crucial to emphasize the location just as actively, or even more so, than the property itself as buyers and renters typically search based on location. Therefore, as a real estate agent, highlighting the location is just as essential.
You can now do this more effectively through the Flattel App. Prospective buyers are more likely to commit to a property where they can preview the neighborhood beforehand. Record videos showcasing available properties and their surroundings, and don’t forget to briefly narrate about the location in the footage.
