Calculate property prices based on important factors

Many homeowners and buyers want to know what the price of a property is based on. Especially if the property being traded is not newly renovated. In fact, if a residential unit has been built for several years in an area, how much cheaper is it than a newly built unit in the same area

This depends on several factors, and you can read the impact of each of these factors by reading this article

Year of construction
The first thing that affects the price of a property is its age. If we assume that the price of a new unit in your neighborhood is known, then you can calculate the price of your property from the following formula

The price of the property for up to 2 years is equal to the price of newly built residential units
Between 3 and 10 years, the price decreases by 2% every year
Between the ages of 10 and 20, it still drops 1.5 percent each year
After 20 years, about 65% of the price of a new unit

Note: The price of a large property does not follow this rule

Elevator and floor
The next issue to consider is the residential unit floor and having or not having an elevator. For the first floor or on the ground floor, the presence or absence of an elevator has no effect on the price; But from the 2nd floor onwards, it becomes important

If the house does not have an elevator, it is important which floor the apartment is on

Second floor, 5% price reduction
Third floor, 20% price reduction
Fourth floor, 30% price reduction

But if there is an elevator, the incremental impact is not so great

Classes 3 and 4 each increase by 2%
Classes 5 and up increase by about 5 to 6 percent

Parking
These days, car parking space has become one of the problems of big cities. For this reason, having or not having it affects the price of a property and it is assumed that each unit has a parking lot. If the property does not have a parking lot renovated, its price will be 10% cheaper than a renovated property with a parking lot

Number of units
The number of units in an apartment both affects the amount of comfort and silence and changes costs. For this reason, if the renovation property is single-unit, it will be 10% more expensive than the multi-unit property

Example
Suppose you have a 5 year old residential unit or you want to buy it. We said that the price of residential units is unchanged until the second year, and after that, the price will be reduced by 2% for each year, which will be reduced by 3 to 2%, and the price of a 5-year property will be 94% of newly built property

Now, if we have a 15-year-old unit in the same neighborhood, how much will it cost? Between the third and tenth year, it decreases by 2% every year, ie 16%. From the thirteenth to the fifteenth year, it decreases by 1.5 percent per year, ie 7.5 percent. A total of 23.5 percent is reduced, which means that the price of the fifteenth year is equal to 76.5 percent of new property

Important Note: All of this is in a situation where the two housing units are similar in every way (map, storage, facilities, etc.) and differ only in the features that we mentioned

Note: The effect of the mentioned factors may be somewhat different in different urban areas, what is said here is based on the average obtained from field research