8 Features Home Buyers Will Pay More For
What will home buyers pay extra for? Canada Mortgage and Housing Corporation (CMHC) conducted a unique study to find out. It looked at MLS sales data on 1200 houses and 3000 condominiums sold in 2011 through the Real Estate Board of Greater Vancouver, and the findings are also considered accurate for the Fraser Valley and Chilliwack.
Location proved to be the number one determination of value, the study found, and the results were startling. The study found that a detached house valued at $600,000 in Coquitlam would sell for $1.8 million on the West Side of Vancouver, $1.1 million in West Vancouver and for $800,000 in neigbouring Burnaby.
Buyers were willing to pay an average of 26 per cent more for a detached house that was less than 10 years old, compared to an older house. In the condo market, the value perception study revealed that buyers would pay 24 per cent more for a condo apartment that was less than five years old, compared to older models.
In the condo market there's a direct correlation between a condo's square footage and its price. For every 10 per cent increase, the sale price went up by 10 per cent, for example.
In a spectacular setting like the Lower Mainland, a view adds 8 per cent to the value of a resale house.
A home's proximity to schools with a good reputation makes a 6 per cent difference in the selling price, according to the CMHC study.
Some value-adding features in the study are condo-only. A second bathroom in a condo added 8 per cent to the value.
Many strata properties don't allow pets at all. Those that do attract pet owners who are willing to pay an extra 6 per cent to be able to bring Fido or Fluffy along.
Investors look for condos they can rent out, and condos in buildings that allow rentals command a
5 per cent price premium.