For most potential buyers in the market, the price and square footage are the two ultimate factors to consider before buying a house. But what happens when you come across two properties with the same area size and matching price tags? Since you cannot compare two properties the same way you would compare other assets, such as a vehicle or a smartphone, determining which option is better suited to your needs could turn into a definitive struggle.
Wondering what is the best way to go about it?
Well, if you ever find yourself in a situation where you need to make a judgement call about the value of two almost identical houses or apartments, you must take a look at certain characteristics of each unit before making a decision. This blog will discuss the parameters that all investors and buyers should keep in mind when choosing between two or more similar properties.
How to Compare Two Properties That Are Almost Identical
Imagine coming across two different houses in slightly different locations, with each structure perfectly ticking all the major requirements on your house hunting checklist. They also have a similar market value and cover the same area. In a situation like this, how would you decide which house to choose as your next residence and which one to let go of?
Needless to say, this decision can lead to a lot of regrets and second-guessing later down the road. Therefore, it is important to undertake meticulous due diligence and do your research before signing below any dotted lines. Without any further ado, these are the parameters you must consider while comparing houses to buy.
Location
This one goes without saying. Location is the most important parameter in the home buying comparison. However, if you have to compare two properties that are located in the same neighbourhood, the best way to proceed would be to take their individual placements into account. For example, is one property situated on a west-open plot? Is the other located near a park? Are both houses located in suburbs or near a busy road?
All of these factors can play an essential role in determining the value of a property. You can also check out our guide on key features of a family-friendly neighbourhood for more insight into the topic.
Layout
A convenient layout is among the top things one must look for in a family home. It can also have a big impact on the appeal and value of a property.
Hence, if you come across two houses or apartments that cost the same and are located in a similar area, you may want to consider their layouts as the tie-breaking factor. Keeping in mind your preferences and lifestyle choices, try to compare houses side-by-side to figure out which one has a better layout than the other.
Reading nooks, additional storage space, extra space for the home office, and a dirty kitchen are some of the most notable features that can make any property worthy of an investment.
Quality of Construction
Another important parameter is the quality of construction. When comparing houses to buy, one must ask the seller about the year of construction, the quality of building material, the type of paint used, the quality of various fixtures and fittings, the durability of flooring materials, and most importantly, if the structure has been well-maintained throughout the years.
If you believe one property may require repairs and renovations in the next couple of years while the other looks as good as new, you may want to opt for the second option, granted it checks the rest of the requirements on your checklist.
You can also take a look at our home inspection checklist for more information.
Amenities and Facilities
There are certain amenities that can increase the value of a property. This may include proximity to fully functioning mass transit, mosques, public parks, playgrounds, campuses of educational institutions, hospitals and healthcare centres, supermarkets, and recreational spaces. Availability of commercial centres, banks, salons, fitness centres, and offices are also among the top amenities many people look for when buying a house.
So, if one property is a little closer to the bus stop than the other, it might be a good idea to invest in it. Similarly, if one house or apartment comes with a secure parking spot but the other doesn’t, you may need to reevaluate your final decision accordingly.
Capital Gains
Whether you are buying a house for the first time or looking to generate a second stream of income by investing in a rental unit, it is important to select a property situated in a property hotspot for ideal capital gains in the future.
For the uninitiated, property hotspots are suburban residential enclaves with relatively affordable property options and the latest infrastructure. These areas are usually undergoing development work and are scarcely populated. However, once the city centres get crowded and expensive, people start moving to these newer residential enclaves, which allows the property prices to go up.
Here is how you can identify property hotspots in Pakistan.
To conclude, if you ever have to compare two properties with similar prices, please make sure to consider their individual location, layout, quality of construction, amenities, and project capital gains before making your choice.
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