Find Out Ways to Increase the Value of Your Property

Real estate prices are currently going up and it can be extended to many regions. The trend has also arrived in medium-sized and small towns in recent months. However, current developments are only one side of the coin. Those who commit themselves to a property naturally have an interest in maintaining its value or, in the best case, increasing it. In this context, one thing must be clear: To sell real estate, the pure purchase price is not sufficient. For this reason, you can increase the value of your property to help you get better prices.

Such a goal cannot always be achieved. On the contrary, various factors can lead to stagnation in value growth or even a discount, especially if various circumstances change over time. Such factors may include major infrastructure projects, changes in social structure, increase in crime, settlement of industry and other disruptive factors. For example, if a federal motorway is built in the immediate vicinity or the airport is expanded, real estate is quickly less in demand. This also reduces their value in the end, as opposed to your plans to increase the value of your property.

Basically, such influencing factors on the property value are very difficult to take into account. Nobody can look to the next 30 years or 40 years into the future. However, short to medium-term assessments are quite possible if the municipalities’ building and development plans are taken into account. Large projects in particular usually have several years to sometimes decades lead time between the first planning decision and completion.

Property price affect plans to increase the value of your property

The subject of real estate value is important for every buyer. Ultimately, this defines the purchase price; a fact that also applies to the new building. Here, the value determines the combination of:

  • Land value
  • building-costs
  • Additional purchase costs.
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Anyone who is thinking about building or buying their own home as a household, has to think about how much can be invested in a property. Various factors play a role here, from existing assets to regularly disposable income to various loan models for financing. All criteria must be taken into account in the intensive preliminary planning.

Assets also include savings and bank deposits that can be used for real estate purchase. The household income determines which rate can be borne. Both calculation parameters together give the amount of the loan that can be serviced. It can also be used to calculate the maximum investment in a property.

Preservation of value: condition and maintenance

It is very good to upscale middle locations and make properties expensive, even if their condition leaves something to be desired. A bad condition leads to discounts in any case. A new building is usually the most expensive option. This is especially true when it comes to upscale equipment in combination with a very efficient construction.

In other words, the property meets high requirements in terms of insulation and the use of renewable energies. The latter include, among others:

  1. Solar thermal
  2. Heat pumps / geothermal energy

Here, the property value quickly rises well above the average. This factor continues for a very long time, as modern heating systems and methods of saving energy are usually designed to last for decades.

It looks different with aspects of the interior design. Here the ravages of time begin to gnaw very quickly. Take flooring, for example: the laminate that is often used has an average lifespan of ten years and then has to be replaced. A parquet floor is a bit easier to handle, because it can be sanded down and simply resealed. Corresponding considerations about the flooring also ensure different value retention. This, in turn, can become very interesting in a later sale.

Modernization can help to increase the value of your property

As soon as a property is inhabited / used, it loses part of its intrinsic value. If you as an owner do not want to let this loss of value become too great, there is no avoiding maintenance and modernization. A mistake must not be made here to equate the two. Property owners should regularly deal with maintenance and modernization in order to maintain or increase the value retention. 

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Maintenance always serves to help you maintain or increase the value of your property. The best example is the replacement of a shower cubicle that has been in use for years. Modernizations aim to upgrade the property. This includes new, better insulation or the installation of new thermal insulation glazing. Such measures increase living comfort and add value; an aspect that applies to both rental properties and homes.

With the help of a modernization, owners have the opportunity to increase the value of your property. With regard to the financing of the whole, in addition to the classic bank loan, subsidies can also be used. 

Calculate property value: what procedures are there?

So far, it has primarily been about those factors that currently and sustainably influence the value of a property. Knowing these framework conditions is one thing. Ultimately, however, a number must appear somewhere that reflects the value of the object. The real estate industry has developed various methods with which the property value can be calculated:

  • the discounted earnings method
  • the real asset method
  • the settlement procedure.

Comparison of value method at a glance

The comparison procedure is certainly one of the most straightforward procedures. Put simply, it aims at the comparison of a property with similar sold comparable objects. Ideally, these are similar objects in an adjacent location. The difficulty in using this procedure is that many properties and properties have very individual characteristics, for example in:

  • location
  • Soil condition
  • Building law

For this reason, the comparative value method also works with a comprehensive catalog of features that result in surcharges or discounts.

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increase the value of your property

Property value is influenced by many factors

With the help of the market influencing criteria listed here, it can be explained why there has been great demand for some time in cities and metropolitan areas. Cheaper real estate or building plots can only be found further outside. However, the better rural regions are structurally linked to the centers, the more attractive the location becomes. Then prices rise there too. 

Conversely, poor infrastructure becomes a negative criterion. The digital infrastructure now plays a central role not only for existing companies or for the relocation of companies. If the transport connections are also poor, they lose further attractiveness, also for the influx of potential new residents. In addition, local factors such as the location as well as the equipment and building fabric have an impact on property prices.

For investors and dealers, an accurate valuation is essential before an object goes on sale. A number of procedures have become established for this purpose in recent years. It can’t hurt to know this beforehand as some of the factors provide more detailed information on whether a price is justified. In addition, the various criteria make it easier to see how the value of a property will develop in the long term.

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