If you’re in the market hunting for a house right now, there’s no doubt that you’ve narrowed a few down based on simply one factor alone: price. Indeed, nothing plays a bigger role in buying a house than your budget. Certain houses might be in your budget, and certain of them might not be. But the question is – why is that? What is it that determines the price of a house, thereby influencing whether it’s in your budget or out? Well, experts of residential real estate development companies are here to spill the beans.
Factors That Impact Your Future Home’s Value
A lot of factors can play a role in deciding the value of your new home. Apart from what you’re willing to pay for your dream home of course. Here’s a list that can give you an accurate idea of the facets that can influence the value of the house you wish to purchase –
- Locality or the neighbourhood
If you want to know the true value of that house you’ve been eyeing for a while, check its neighborhood. Are there many schools around? Is the public transport network easily accessible? Is the nearest diagnostic Centre or hospital just a couple of minutes away? This shopping for daily necessities convenient due to a market nearby? If you answer ‘yes’ to all and find that the price of your chosen property is higher, it might well be justified. Real estate agents comp out the area before ascribing a value to a home.
- Demand and supply
In conversation with a broker to book your dream house? You may discover that many other buyers are interested in the same home as you are. In that case, you can be sure that it’s going to turn into a numbers game. High demand with low supply will obviously equal higher prices, while low demand coupled with low supply might lead to discounted rates. So before you make your final offer, take this factor into account as well.
- Size of the house
A no-brainer in this regard, the size of the house you want will be one of the biggest influencers when it comes to its sale price. A bigger house will obviously cost you more; while a smaller one may prove to be more budget-friendly, according to experts of reputed real estate companies in Kolkata.
The price of a specific property is calculated per square foot based on its size. For a buyer, this value can differ to a great extent depending on the location. That said, it’s not just the square footage that matters. The actual usable space in your home will also be heavily considered.
Usable space is defined as any space in which you actually live and excludes attics, garages, and basements. When you’re in the market, livable space should be the most important to you so you actually pay for what you use. This includes bedrooms, bathrooms, balconies and kitchen primarily.
- Interest rate
You might not think about this if you’ve managed to grab a good deal on your dream house, but the interest you pay over the years can actually amount to a lot and make your house more expensive than it seemed to be at first.
Both short-term and long-term rates can definitely create a dent in your pocket if they’re too high. For example, high short-term interest rates might increase your savings but they’ll also mean spending more to get your house. Similarly, long-term interest rates can be influenced by factors such as inflation and investor sentiment causing house prices to rise.
- Economic indicators
The economy of the city/state you’re in at large can influence your ability to purchase the house you want to. For example, if the economy is slow or suffering, not many people will be able to afford a house, which can perhaps lead to a reduction in their prices. At the same time, a booming economy would mean more purchasing power, which can lead to price appreciation. Hence, as per real estate builders, it’s important to pay attention to the current economic trends so you can time your purchase accordingly.
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- The condition of the house
- Development of infrastructure
The infrastructural development of the area in which your future home is located, like most of the other factors mentioned in this list, can influence its price. You see a home that has great infrastructure all around can increase its perceived value. This, in turn, can increase its real value. Proximity to metro rails, excellent routes and a ton of conveniences can dramatically influence the final price of your house
- Type of area
As a working individual with a steady job, it’s natural to want a house closer to work. However, areas with IT parks will not only have modern-day residential complexes, but those will also come at a hefty price. Areas like these enjoy a constant, surging demand. So if you want a house here, be ready to shell out the big bucks.
Buying a home is one of the biggest decisions you’ll ever make in your life. That’s why experts of the best residential real estate development companies in Kolkata advise that you take it slow. Scope out the market, get yourself up to speed on the latest trends and do a proper analysis to ensure you get the best deal.