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Factors that Affect Real Estate Prices

Posted by admin on January 9, 2020
| Blog
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Before you go into buying a new home, it is important to know that there are many factors that affect property value and the price changes all the time.

We are going to take a look at some of the most affecting factors for the price in real estate in Bulgaria.

 

  1. Location


We often mention the location as a factor for many things, but it plays a major role in making the final decision and in this case also for price positioning.

Statistics for the average price of a property in a neighborhood can be an extremely good guide to know how prices in that area go, as there are key factors for each neighborhood that drive prices down or up.

These kinds of factors are: is it near a school or kindergarten, close to any public transportation, how quiet is the neighborhood, crime levels in the area and if there are parks and shops nearby?

Of course, it is possible to have a price change if the neighborhood is getting quieter and safer or if they open a new subway station nearby, etc.

 

  1. Floor

We have mentioned the importance of the floor before, which also affects the price. If the apartment is located on the first floor, people are worried about looting, so the price is lower, despite the convenient location. According to latest statistics 27% of the Bulgarians are afraid of home theft, which is the highest rate in the European Union.

The top floor also lowers the price of the property as people often worry about leaks and other irregularities on the roof.

 

  1. Type of construction


Quite often the type of construction is a factor in the cost of a home. The most preferred is brick construction, which has the highest price.

The following are preferred single-panel formwork and creep formwork structures, as they are mainly used for old constructions, which are robust and reliable.

The prices are lower but similar to the ones for the brick constructions. The lowest prices are for the panel buildings as they are the most unstable and only the complete renovation of the building can raise the value as it increases the life of the structure.

 

  1. Condition


Of importance for the price is how well are the building and exterior spaces maintained, is the elevator and everything works, whether the front door is lockable, etc.

This is important as the cleanliness and tidiness of the property in and around it implies a more peaceful and cozy life for the new owners.

The price is also affected by how many times the apartment is renovated, what has been changed or remodeled, square footage, interior layout, the exhibition and the furniture.

 

  1. Inflation

Inflation is often a factor for home prices and their decline. People buy properties when inflation is expected to rise as a safeguard against the depreciation of money.

 

  1. Demographics


While these are factors that do not affect immediately, they are subject for changing the prices in the future.

Fertility, mortality, gender, migration and other factors are all part of the impact of property search and supply prices in the future period of time.

According to Eurostat, 85% of Bulgarians live in their own homes, one of the highest rates in Europe.

 

Conclusion

Each property is different and has a different price. Once it’s been listed, the property has 2 weeks to be noticed.

If it is reasonably priced, by its characteristics and pricing factors, it will reach up more potential customers than if it’s overpriced.

We advise you to trust the professionals for the valuing of your property if you are on the seller’s side.

As for the buyers – don’t just rely on someone who wants to sell his property, because you can end up pay more for a real estate that costs far less, instead go with trusted real estate experts.

 
 
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