Many factors influence the value of a property. These are not only numerous but also diverse and, in particular, individual. Among other things, the value of a property is determined by the individual requirements of the buyer or owner. What purpose should the property serve? Should it be used by the owner? Should it be rented out and generate a high return? Is it intended as a financial investment?
There are certainly "neutral" ways of determining value. An appraiser can be very helpful in this regard—they are required to determine values objectively, without being influenced by personal preferences or reasons. The use of various valuation methods, which are prescribed depending on the type of property, ensures that professional appraisals reflect the current monetary value of the property in question.
This is a purely factual aspect, the consideration of which makes it possible to answer the question of whether I can afford a particular property and whether the bank will co-finance it.
When it comes to owner-occupied property, things get really exciting after this important first step. Especially when several parties want to make the selection. Everyone has their own wishes and ideas...
In any case, characteristics such as type, size, age, condition, etc. determine the value—the aspect of "location" must be considered in detail. Location is not just a geographical term, but a whole range of characteristics that, above all, become relevant to the decision when taken together.
Some examples:
- Can I reach all the places I want to reach (today, tomorrow, and the day after tomorrow) from the location of the property? My workplace, my friends, my leisure and sports facilities, etc.
- Is the location of the property beneficial to my health? Will this remain the case, or is there a risk of negative changes—industrial development, rising water levels, changes to neighboring buildings (the environment, new highways, previously hidden, well-secured, or unknown new contaminated sites, subsidence, etc.)?
- What is the cost of living in the location? How high are the property taxes, how high are the consumer prices there?
- What kind of climate (macro and micro) can I expect? Will the high altitude air agree with me? Will the constant humidity and fog bother me? Will the strong wind bother me, even when cycling?
- How clean is the neighborhood? Is there trash lying around? Does bulky waste remain there for long periods of time?
- Does the parking situation allow me to easily park my vehicles in public spaces? Cars, motorcycles, bicycles, are there ways to do this, etc.? Are the vehicles safe? Is there vandalism?
- How green is the area, who maintains the plants, who bears the costs, do the plants pose any dangers? Are there tall trees nearby?
- Can I walk my dog, is there a walking route nearby for the owner?
- Is the area safe, what does the local police officer say?
- Will I get along with the neighbors? How quiet is the area at night? And so on and so forth...
The list could go on and on—it just goes to show that there are a multitude of factors that influence the quality of a location and also determine the value of the property.
So, there is a lot to consider before making a decision to buy a property.
The purchase involves a large investment and a great deal of additional effort. Incidental acquisition costs, refurbishment costs, renovation costs, the move...
... which means:
Only the user can assess the true value of a property.
