New Factors That Can Affect Property Prices
New Factors That Can Affect Property Prices
For many years there were just a few things that affected property prices, and had an impact on what a seller could charge to sell a property.
In the beginning it was the value of the property, what was it worth.
No lender is going to lend £200,000 on a property only valued at £150,000. Not unless the buyer stumps up an extra £50,000, over the valuation; or the seller reduces the asking price.
Then there always is location.
Location, location, location!
Properties in the South, especially London, and many resort or seaside places, have higher house sales than the North.
There always is the size of a property, smaller properties sell for less.
And of course there is our old friend supply and demand.
If there are more buyers looking to buy a property, than sellers and properties being sold, it is a seller’s market, and prices can tend to be higher.
If there are more properties being sold by sellers than buyers looking to buy, it is said to be a buyer’s market, and properties tend to be lower.
But we live in a new digital age, an age where location of a property is important, and so is the law of economics, supply and demand, but there are some new factors influencing housing prices, and some of them we may not have considered in the past when we moved into a new place to live.
When you go researching for properties online these days, the listings will give you estimates on how much your average energy costs may be, gas, electricity, water, and they also show a rating for broadband in that area.
How fast the broadband is for the area in which you may be moving.
These are factors that can influence a buyer’s decision in purchasing a property.
If a property has a high cost factor associated with it for utilities such as gas and electricity, it can cause a buyer to decide not to purchase that property. They simply do not want such high energy expenses associated with owning the property.
The same can be said of poor broadband service. As we are in the digital age and everything is done online, such as making purchases, streaming films, listening to music, using our Alexa’s, and there may be more than one person in a household using the broadband at the same time, we require a good broadband signal, and bandwidth.
Some estate agents feel that poor broadband could cost a seller up to 20% off thei asking price for a property, and could even prevent a sale.
Buying Agent Henry Pryor stated, “Houses without a connection or with slow download speeds can be worth up to 20 per cent less. The internet is now the fourth utility after gas, electricity and sewage.”
The Chief Executive of The National Association of Estate Agents, Mark Hayward said, “Slow broadband can definitely impact a property’s price.”
“In some instances it can make a property very difficult to sell.”
While currently there is no legal requirement for estate agents to disclose broadband speeds, or if a property doesn’t have broadband, and may not be in an area that can get it, the majority of purchasers are not going to buy a property if it cannot get broadband.
And as mentioned, slow or poor broadband can affect a property’s price.
While there are many things to consider and look out for when buying a property, broadband is now one of them.
Mobile Phone Signals
And since we are on the topic of broad band speeds and buying a property, it is also a consideration when buying a property if you can receive a mobile signal or not.
There are times when someone moves into a new home and has not thought of checking their mobile signal when they were viewing the property.
Many people have abandoned their landlines, and only use their mobile phones. If they cannot get a good signal in their own home, this, too, can affect if they decide to live there or not.
This “effect” ties in with location.
Properties near a Waitross tend to have a higher sale value, and now this has even extended over to Aldi.
Aldi has become so popular that having a property near one can help in selling it, and also increasing the property’s value.
As we become more and more reliant on the Internet and broadband, we need good coverage and good service. And it can affect selling a property, especially if a buyer has an Alexa and wants it to become a “smart home” and turn on lights and stream films, and in essence run the household.