The most important factor to consider before buying a property is pricing it. It could be an apartment or villa, etc. You should make sure you know about how much that property is worth. Pricing that property correctly gives you an advantage in that you will make the correct decision on whether it is worth buying or selling. It will allow you to go to the negotiation table prepared. However, one just doesn’t simply guess the price of a property without considering some factors. Therefore, one should take into account the following:
- Location of the Property
The location is very important in determining the price of the property. Does the place allow easy access to the places you frequent the most such as work, school, stores to shop at, recreation, health facilities, friends and family, and place of worship? If it indeed allows easy access, then the house is very valuable and will have a high demand. These include houses that are located in the lively part of cities. For example, Bole Tower Apartments by Metropolitan Addis, which is located in the heart of Bole, has carefully designed units, club, gym and commercial areas. This implies that you will be forced to assume it has a higher price. But it is still worth it. However, if the opposite is true, then you will have to value it at a lower price.
- Size and Number of Bedrooms
It is a known fact that everyone has an idea of how many bedrooms they would like their future houses to have. Most people want their house to have at least two bedrooms where one is for them and the other is for guests. However, if you are looking for a house with more than two bedrooms, then it is likely that the house is bigger and fancier. It is well known that the bigger the house the pricier it gets.
- View from the House
Do you see yourself standing on the balcony taking in this great, beautiful view in front of you, feeling the air brush against your skin? Then one can be sure that views from apartments matter to you. If you are looking for apartments with beautiful views then be sure to assume those apartments cost more than those that don’t come with a beautiful view.
Age is very crucial in determining the price of a property. It is usually the newer properties that are highly demanded as they don’t require any renovation costs. People don’t have to worry about any damage as is with older houses that have been inhabited by other people.
- Interest Rates
The level of interest rates is another important factor when pricing a property. If interest rates are decreased by the National Bank, the lenders will do the same. This will decrease the monthly mortgage repayments that the borrowers will be expected to pay. This will lead properties to be sold at lower prices. The opposite is also true.
- Economic Conditions
People’s ability to buy or sell properties is highly affected by economic factors. When the economy is expanding or at a boom, employment will increase and so will the purchasing power of the people. This prompts people to invest in a new home or second home, which they might rent. This increased demand for houses will lead to higher prices. On the other hand, if the economy is contracting or is in depression the opposite will occur.
When planning on buying a property is best to value it. To do that taking into account the above factors will be extremely helpful. However, they are not the only factors. There are also others like the weather, infrastructures around the house, security and so on. There may come a time when you might want to sell your house. In this case you will have to consider a lot of things. In addition to the above mentioned factors, political stability, purchase price, the present condition of the house, etc will be very useful.