Property appreciation: find out how it happens and what factors interfere
Posted: Sun Dec 22, 2024 6:33 am
Real estate valuation, as well as pricing , is not an easy task and we know that. However, this mission has become even more complicated in recent years. The first point in question was the growing appreciation of the real estate market, mainly due to the holding of large events in Brazil. Soon after, it was the turn of the economic crisis that hit our country and thus there was a stagnation in prices.
By observing these points, it is clear that it is essential to understand which factors influence the value of a property. Furthermore, property appreciation is a phenomenon to which real estate developments are subject. This entire appreciation process is monitored by investors, such as participants in the financial market.
There is a belief that real estate values are constantly increasing, but this is france email database true. The price of these assets can also fall. And do you know why? Because these prices are set by the market. And so they depend on both specific factors and the surrounding conditions.
Thinking about helping you with everything that involves the appreciation of a property and what the reasons are, we prepared this complete and super practical post about the characteristics, in addition to the events, that define the value to be paid for the property. Let's go!
Price vs. Value: What’s the Difference?
Although they are treated as the same, price and value are very different concepts. As the essential element in real estate negotiations, price is the amount that is paid. Therefore, it is influenced by the economic scenario and so a property may end up being more expensive than its real value.
But when it comes to value, we are talking about the appreciation of the property and they are focused on the characteristics of the house or apartment. An example could be an apartment that costs R$500,000, however, this does not mean that this is the amount to pay, as it is necessary to consider whether it is new, used, the location and even other conditions before purchasing.
Property valuation: what is it?
Property valuation - Property key with house keychain
In the simplest and most practical explanation, property appreciation is the process by which the market value of residential or commercial properties increases in relation to a given initial value. This is caused by changes in the property, its surroundings or market conditions.
Nowadays, it is common to see real estate investors waiting for these price movements to occur so that they can profit from real estate speculation . There are several factors that can influence the value of a property, so we have put together a list of the main ones, check them out:
Location
It is very common for buyers to first look for properties available in such neighborhoods when they start looking for a new home. And most of the time, they look for properties located close to their jobs and shopping centers. However, this comes at a price.
The location and reputation of the area where the property is located is one of the main determining factors in the appreciation of the property. There are two reasons for this: safety and accessibility. Neighborhoods that have a bad reputation for being more violent are unlikely to be chosen by buyers because they do not convey a sense of tranquility, quality of life and, most importantly, family safety.
Therefore, condominiums that have 24-hour security and monitoring are more likely to be valued higher and, consequently, more expensive. Furthermore, they are almost always located in places with low rates of robberies and break-ins.
By observing these points, it is clear that it is essential to understand which factors influence the value of a property. Furthermore, property appreciation is a phenomenon to which real estate developments are subject. This entire appreciation process is monitored by investors, such as participants in the financial market.
There is a belief that real estate values are constantly increasing, but this is france email database true. The price of these assets can also fall. And do you know why? Because these prices are set by the market. And so they depend on both specific factors and the surrounding conditions.
Thinking about helping you with everything that involves the appreciation of a property and what the reasons are, we prepared this complete and super practical post about the characteristics, in addition to the events, that define the value to be paid for the property. Let's go!
Price vs. Value: What’s the Difference?
Although they are treated as the same, price and value are very different concepts. As the essential element in real estate negotiations, price is the amount that is paid. Therefore, it is influenced by the economic scenario and so a property may end up being more expensive than its real value.
But when it comes to value, we are talking about the appreciation of the property and they are focused on the characteristics of the house or apartment. An example could be an apartment that costs R$500,000, however, this does not mean that this is the amount to pay, as it is necessary to consider whether it is new, used, the location and even other conditions before purchasing.
Property valuation: what is it?
Property valuation - Property key with house keychain
In the simplest and most practical explanation, property appreciation is the process by which the market value of residential or commercial properties increases in relation to a given initial value. This is caused by changes in the property, its surroundings or market conditions.
Nowadays, it is common to see real estate investors waiting for these price movements to occur so that they can profit from real estate speculation . There are several factors that can influence the value of a property, so we have put together a list of the main ones, check them out:
Location
It is very common for buyers to first look for properties available in such neighborhoods when they start looking for a new home. And most of the time, they look for properties located close to their jobs and shopping centers. However, this comes at a price.
The location and reputation of the area where the property is located is one of the main determining factors in the appreciation of the property. There are two reasons for this: safety and accessibility. Neighborhoods that have a bad reputation for being more violent are unlikely to be chosen by buyers because they do not convey a sense of tranquility, quality of life and, most importantly, family safety.
Therefore, condominiums that have 24-hour security and monitoring are more likely to be valued higher and, consequently, more expensive. Furthermore, they are almost always located in places with low rates of robberies and break-ins.