If your property has significant historical value, would it influence the property’s sale? As with many questions, the answer is: It depends. Every house will come with some history, some more than others. It could be architectural history or famous history. Both may have a positive or negative impact on the property value.
If your home is quite old in age, you might be looking into its history to aid in selling. This investigation might pay off or it might hinder your chances of receiving an attractive offer on your property. We have listed a few ways in how the historical value of property influences its sale and to find out more about your property its always best to speak with a qualified property valuer who will conduct a valuation of the property, with a retrospective valuation as well as the potential of increasing its value if you as a homeowner are wanting to sell your property in the future.
It’s easy to assume that if a property was previously the home of someone famous it would drive up demand or interest in the property, however, that is not always the case. Most people when looking into buying property will be more concerned about whether the property suits their lifestyle. Real estate agents often find that when telling prospective buyers someone famous has lived on the property, the name may be unfamiliar, creating no interest, or simply brushed off as an interesting fact that has no bearing on whether an offer will be made.
If a serious crime has been committed on the property, such as a murder, the interest will fall greatly. This may not be for supernatural, or superstitious reasons, but simply because death is something most people are uncomfortable with. Nobody wants to live day by day on a property that is a constant reminder of someone tragically losing their life. If the reputation of a property is negatively affected so much that the property cannot be sold, owners of the property may find their only option is to demolish the property and start anew.
Another way a property’s sale may be negatively affected by its history is if it has been named a landmark. Many landmark certifications will restrict the renovation or developmental potential of the home which will turn off many prospective buyers. Some landmark designations allow for certain modernizations so that the property may continue to be liveable. However, there could be added steps, permissions or fees that may have to be dealt with and many do not want the hassle.
There are some that are very much into the prestige and status that may come along with owning certain properties. If a property has an incredible architectural design, there could very well be historical home value appreciation.
These homes will likely have the strictest restrictions for renovations, but the beauty of the property is seen as a positive to many potential buyers thus increasing its property value. There are certain areas, suburbs, and streets of great historical value that have a high demand for their beauty, design, or exclusivity. Their limited nature will thus increase its value according to the rules of supply and demand.
Most countries or regions will have tax incentives in place to encourage property owners to maintain a property’s landmark status. This could be great a tax break or concession. For many, this is an attractive feature of living in a home of historical significance.
If you are interested in discovering your property’s history to potentially attract buyers or increase the property’s value, be sure to consider the effect this information may have. A property’s history may be a great advantage or could potentially turn away buyers. Having a retrospective valuation completed on the property will give you insight into the value of the property at a back dated time which will give you an idea on how the property has either increased in value or how you could potentially improve the value of your property.
John Anderson is one of Melbourne’s leading experts in commercial and residential property valuation services. John is a registered Chartered Surveyor and Senior Property Valuer with over 20 years of professional experience providing property valuations across Melbourne and Victoria. His in-depth expertise in real estate and property has allowed him to share his specialised knowledge as an authority keynote speaker at conferences and universities across Melbourne.