A home is a form of real estate that appreciates steadily on a yearly basis at 3 to 4 percent. The rate of appreciation has been linked to population and the inflation in the country.
The research was carried out to know what really makes the value of a property to appreciate and the features the buyers are willing to pay more for in the market. Series of researches were carried out and millions of listing were analyzed to know and calculate the annual price growth range of the homes with particular features. The following points are some conclusions drawn from the research.
Small homes are homes smaller than 1,200 square feet and they were discovered to have small house in Charleston SCappreciated by an average rate of 7.5 percent yearly for the past five years. In contrast, larger homes (homes that are larger than 2,400 square feet) rose by an average of 3.8 percent yearly through the same period. The demand for smaller homes was driven by baby boomers who are looking to downsize and millennials that wanted more affordable starter homes.
Two bedroom homes
Homes with smaller number of rooms were seen to have appreciated at of 6.6 percent per annum while homes with a higher number of bedrooms were recorded to have appreciated at 4.3 percent per annum to the research carried out.
Open floor plans
There are many features always attached to a home but the ones with open floor plans were discovered to have appreciated at the rate of 7.4 percent per year which makes it the most appreciating feature on a home. All other features like granite and stainless steel don’t really add value to the price of the home. They are must have features to be competitive in the marketplace, it is not as if they are adding any long-term value to the home. Whether you like it or not a few years from now they will be replaced when you want to spruce up your kitchen.
Contemporary homes with modern architectural designs have been discovered to have the highest potential for appreciation. Bungalows and traditional styles are seen to be the next highest appreciating style with 6.5 percent and 5.6 percent yearly. Under the review period, modern homes were discovered to have increased by 7.7 percent annually. They are known to come in geometric shapes with large windows. They are also energy efficient that are fitted with the latest designs.
Green space views
Homes with natural views are seen to appreciate better than their competitors homes with park views appreciating at 7.9 percent per year, homes with mountain views appreciating at 5.1 percent per year and homes at the oceanfront with ocean views appreciating at 3.6 percent per year. Homes with park views appreciated highest. They are discovered to hold value for a longer period of time and when they dip they recover quickly.
What is responsible for this is that people love to be as close to nature as possible and a lot of them appreciate and enjoy the outdoor activities the environment of the home offers. Homes with ocean views appreciated lowest, no thanks to the recent incessant storms which may have pricked buyers from acquiring ocean front properties and also they are known to have a high cost of acquisition among its peers.
Reggie Walters is a Real Estate professional with Dunes Properties of Charleston South Carolina, Realtors and specializes in helping you buy and sell homes in the Charleston South Carolina area.
Please Contact Reggie today if you are in the market to sell your home in the Charleston SC area.