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Determinants of apartment price

Information about factors influencing real estate price can be useful for both buyers who want to decide maximum amount they're willing to pay and sellers who're seeking an answer to the question how much their property is worth.

 

Although these determinants have different influence on housing price in different cases (therefore be careful not to base your decision solely on figures presented below) all of them affect price to some extent.

 

That means that being aware of these criteria you will be able to assign weights to them on the basis of your unique situation.

 

Factors that influence price of apartments

Location

This concept can be divided into many components: short distance from the city centre (25%) vs. suburbs (-15%); nice safe district vs. district with high crime rates; good transport accessibility (5 min walk to metro + 10%; tram / bus + 5%) vs. problems in accessing some or all modes of transport ( necessity to take other transportation to get to metro -10-15%); noisy vs. quite area; surrounding infrastructure (schools,hospitals, shopping centres +5%); district beautification (trees +6%, parks + 10%) and children's playground (+3%).

 

 

Location is especially important for buyers (tenants) who want to live in prestigious districts: for instance it's likely to be a decisive factor for a person with such preferences when he / she faces a choice between the apartment located in Parižská street whose general condition is quite poor and the apartment in the street without such renowned name but which has much better quality characteristics.

 

Building characteristics

Price difference arises not only from the material used for building construction (brick houses can be 20% more expensive than reinforced concrete ones) but also from the technical condition of the building. Apartments in houses with thermal insulation, regular building maintenance and reconstructed engineering systems are usually sold for higher prices.

 

In addition the number of flats in residential houses can also contribute to a price difference: the fewer the flats the more expensive they are.

 

Floor number

People usually prefer to avoid buying ground or top-floor apartments (-5%) basing their decisions on the facts that in the former case there may be much noise coming from public premises of the building whereas in the later case the possibility of roof leakage and unpleasant sound coming from elevator shaft exists.

 

 

General condition of the apartment

Its assessment includes many factors: floor condition, material of window frames, bathroom / toilet (reconstructed vs. original), fitted kitchen (newly installed vs. original), thermal insulation (on which energy consumption depends), ceiling height (flats with high ceilings are generally more expensive), orientation  (prices of flats oriented to more cardinal points may be higher) and balcony / terrace (with / without).

 

View from the window

Whereas windows which are facing inside yard can decrease apartment price by 8%, due to the view of the forest you can pay / gain 10% more.