Many of us have heard the realtor mantra, location, location, location. What it means: Homes can vary in value because of their location. To arrive at the value of a property, the very basic criteria is the value of the land and the construction costs of the improvements.
Subsequently, the property and improvement’s value then rises and falls with the surrounding properties that develope in close proximity. While there are many factors that can influence the value of a home or business, the nearby area is one of the most influential.
Value is an elusive concept. What is deemed valuable by one person may not be valuable to another. Real estate is somewhat different in that homes and business property have an approximate market value based on size or the home or business, lot size, build date, and, of course, location.
Property values are driven by supply and demand. High demand and short supply drives property values up. Why are some locations more in demand than others? If a propety is located in a city, top dollar and quick sales may be due to close proximiy of entertainment such as movie theaters or golf courses, sweeping panaoramic views of a cityscape or a glimpse of the ocean from one window may substantiate a desirable location. If a home is located near parks, lakes or rivers the recreational possibilities may increase value and rural areas may offer a slower pace of living, sought-after views of majestic mountains, easy commutes to work , weekend get-aways and vacation destinations.
Each state has “viable” areas to target when searching for a new home, new business or new retirement location. As society becomes more mobile, work from-home-options more popular and a slower pace of living more desirable, having to live in a specific area is rapidly becoming “a thing of the past” and location, location, location more of a reality.
Expressed opinions and author assumes no liability for content.