This is a good question and one that I hear often. So, in this post, I explain why properties, although similar, often sell for different prices.
How are properties different?
Every home is unique — some feature ocean views, others are newly renovated; some boast an extra bathroom or bedroom; others get more sun. It is this uniqueness that attracts buyers and influences the price. So, you just can’t assume the value of your neighbour’s house is the same as yours.
Some factors that influence price:
- Location — this includes the proximity of your home to public transport, schools, or shops.
- Layout & size — some people value large homes; others just see them as harder to maintain. Also, open-plan is often popular because it creates an atmosphere of space.
- Condition & age — well-looked-after historic homes or new homes often command higher prices. And, if your property is in tip-top condition, buyers may spend more because they won’t have to fork out for expensive renovations.
- Improvements — Additions to your home are a good thing. However, the value of an ‘over improved’ home will diminish if it doesn’t fit in with other homes on the street.
- Unfavourable events — events such as a fire, amphetamine contamination or violent crime can devastate the value of a home.
In residential property, no two homes, timings, or values are the same.
There is also timing
Like commodity prices, the property market moves up and down over time. And, many factors influence it, both locally and internationally.
An overseas example is the emergence of the Chinese buyer in New Zealand. For a few years, there appeared to be a never-ending supply of investors and money from China. Now, we see a time when it is not so easy for the Chinese to export their money.
Zoning is a local example. The implementation of the Auckland Unitary Plan has altered the value of some properties for the better, and in some cases for the worse.
So, you see, in residential property, no two homes, timings, or values are the same.