Local Records Office, one of Pekin, Illinois top real estate agencies determine whether the future property value of your home will increase include location, land value, market conditions, the economy, size, age and the layout of the home and updates performed. The Local Records Office exemplifies that land value and location are the two most common areas of interest to concentrate on. The demand for land increasingly becomes unavailable and we can never manufacture more. The location has an enormous impact on the value, from where it’s located by city or town to the street and even the plot of land that it’s situated on, location dominates over everything.
Mortgage interest rates are continuing to rise and with lawmakers continuing to add to the deficit, meaning more government borrowing, the inflation scare added to an upward swing in interest rates.
Property value: location, size, the number of bedrooms and bathrooms in Pekin, IL
Comparable (comps) sales –the most common method used and the most accurate way to determine the value of single-family homes, condominiums, and smaller rental buildings (two to four units). The Local Records Office offers a property value report where you can view properties that were sold, or foreclosed within a specific area and list full details about the property you are interested in, including square footage.
Free sites such as Zillow also offer property data, but information is less detailed. An example, the seller’s name may be missing and could be relevant if the seller was a bank, in the case of a foreclosure sale. In that case, the property is not considered a comparable sale because the property was being sold in distress, says, Local Records Office.
Location
According to the ‘Local records Office’ the location is vital when you are comparing sold properties. A professional appraiser will compare homes within a one-mile radius or less, where houses were built around the same time period. To get an accurate valuation, you must also compare the similar houses with similar styles in the same subdivision.
Comparables –properties sold and properties that are for sale in your target area will also give you an idea of where your local market is heading.
For an example, when you find properties that sold for $150,000 and the current inventory on the market prices at $140,000, the asking prices of your competition are just as relevant, and if not more, as the sold prices of other homes.
Geographic lines such as opposite sides of the river, a park, or the main highway are invisible “dividing lines” that you may need to go outside of to find properties in the same subdivision and may not equate as a comp.
Commercial property that is located close to residential development can impact sale and rental prices, according to the Homebase/ The Center for Common Concerns report.
A nearby Walmart, Target, Starbucks, or Whole Foods have positive impacts on neighborhoods. Though, Starbucks also shows a corresponding rise in property taxes.
Upscale amenities such as lively nightlife facilities, coffee shops, and a vital street scene can raise residential property values as restaurants tend to attract foot traffic. A neighborhood movie theatre increase values by 16%, the Portland Tribune reports and increases theatergoers. And upscale grocery stores increase the residential property values by an average of 20%, according to the report.
In Cleveland, the new driver of downtown real estate development is new retail and celebrity chefs are becoming just as powerful as names like Macy’s and Neiman Marcus were.
Parks– without playgrounds, ball fields, etc. tend to raise home values and active use –mainly do not (because of the traffic and noise they attract).
Active transportation amenities –such as bike lanes, walking and biking paths and trails –homes that are considered bike-able and/ walkable neighborhoods are worth far more than the homes that lack these features.
Public transportation –transit facilities generate the development of establishments and also cater to increased foot traffic, the report claims. Additionally, the public transit facilities also contribute an enhanced safety net for the immediate area. And the public transportation system decreases housing costs by reducing the dependency on cars, according to the H + T Affordability Index and was produced by the Center for Neighborhood Technology.
Schools –be sure to check its rankings, when homes are near exceptional schools that are higher in demand, their value holds better than homes near poor-performing schools.
Size
Size or a homes’ square footage is a gauge of 20% up or down when compared with other properties. Generally, homes within the same subdivision fall within the same size range.
The price per square foot comparison is to adhere to the 10 percent rule to be accurate. The percent rule states that improvements and square footage of the land must be in a 10 percent range of the subject property being evaluated, says, Local Records Office.
Using the “thirds” is where you will observe that the actual prices will cluster into groups of approximately one-third each. The top PPSF is limited to the properties that are in the best condition and best location. The middle tier is properties that are average for the area, ie. square footage, condition, and lot size that fit in the median values of that area. And the bottom one-third includes properties where the condition, improvements and /or location are not comparable to the upper two-thirds.
Agents having knowledge of the PPSF and knowing your market are both persuasive tools for not only clients but also for lenders, CPAs and business managers. As the PPSF works best when you have a solid ground in local values, coupled with a strong market knowledge can help you get the relative price every time.
The number of bedrooms and bathrooms
Bedrooms and Bathrooms –is more relevant than raw square footage.
Bedrooms –the three-bedroom homes are a big plus for two-bedroom homes. Four or five-bedroom homes do not add that much value compared to three-bedroom homes.
Bathrooms –when comparing bathrooms, it is good to understand the different types to compare them correctly. A full bathroom includes a shower, bath, toilet, and a sink. A three-quarter bath has a shower, no tub, a toilet and a sink. A half bath has a toilet and a sink but no tub or shower. A five-piece bath (separate shower and tub) generally does not add more value than a regular full bathroom with a combination of a shower and tub.
Red flags to look out for that will de-value your home:
Rerouting of traffic to go through the neighborhood in response to a new development (commercial or residential) nearby
Plans for a nearby hospital, a shooting range, power plant or a waste facility
Neighborhood’s zoning, as multifamily designation means one day you will be living near an apartment complex.
Look into local regulations when you are concerned with losing your view or the amount of sunlight your home’s landscaping receives –when you have your neighbor decide to build a second story –and you end up losing value, says, Local Records Office.
Making improvements
Making improvements on a home before putting it out on market is also enticing to new homebuyers, though, when a home is in an undesirable location, all those well-spent improvements end up not raising the properties’ value. Although upgrades make homes more likely to sell, most add little to nothing to the actual value. Though there are a few exceptions, upgrades that add square footage, an extra bedroom or bath will normally increase the value of the property.
