When it comes to estimating the market value of property the building and its design features are the main variables. By contrast land value is relatively easy to estimate.
The old adage that “there’s a buyer for every property”, is true, but it depends on price. Some properties, however, contain popular building and design features making the estimation easier.
As a general guide, here’s an explanation of contemporary attitudes to WA homes and how they contribute to property values.
Bedrooms: the number of bedrooms remains the most common way to describe a property. Over the last 50 years the number of bedrooms in the typical home has grown from two to four but the average household size has decreased.
Many homes today are occupied only by one or two people.
Regardless of this shrinking household size the desire for larger homes remains strong and the market tends to put higher values on four bedroom houses and three bedroom apartments. Extra bedrooms offer flexible lifestyle options such as a home office or guest room.
Bathroom: the number of bathrooms and toilets is second only to the number of bedrooms when it comes to buyer interest. The market values a second bathroom and toilet or ensuites very highly due to the convenience and privacy they offer. Particularly where a home is shared with adult children or leased to sharing tenants.
Storage: this is an underrated influence on value. We are living in smaller households but accumulating more possessions. Homes with plenty of storage space are likely to be more valued. Spare bedrooms can also be regarded as storage space.
Theatre room: the common ‘games room’ of the 1970’s and 80’s has given way to home theatre. Flat screen TV’s with surround sound units and comfy chairs demand their own space, although I wonder if the trend towards watching entertainment online either at a PC or with mobile tablets may change this trend in future?
Car space: secure car accommodation is important but doesn’t rate as highly as living areas.
Kitchen: popular TV shows about cooking illustrate Australia’s love of entertaining at home or just preparing sumptuous meals. A well designed, functional and spacious kitchen with quality draws and cupboards, bench tops and appliances is an increasing priority for home buyers.
Al fresco area: our climate is ideal for covered and protected areas that open to a courtyard or garden. Whether it’s a simple social space with a modest outdoor setting or a classy BBQ area with a cedar paneled patio, a functional and sheltered setting in the outdoors which expands the living area of the home and utilises the garden can be a great bonus.
Together, these factors add the most value and ‘wow’ factor to a home.
This article was originally published on reiwa.com.