Guide to correctly assessing your property's value
Author: IRA 40 K Real Estate Invesment
Category: Real Estate
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The key to success in the assessment of a real estate, property's value lies in determining what you can do with the property as well as how the property's use can be maximized to make a profit. Each property will have its own unique combination of factors which either moves the property's value up or down. Even two buildings located bang-opposite one another would have differing impact of the same factors or they might have altogether different factors. That said, there are however some factors common to all properties and as a result, you need to consider them each time you assess property.
The first factor which stands out the most has to be access, i.e. the different ways in which the property can be entered or left. A general rule of thumb; the greater the access to a property, the higher will be its value. Therefore, it is vital for you determine whether the legal elements are in place to allow for both pedestrian and vehicular access to your property. Meanwhile, if there is a problem with access, you will need to try and conjure up a solution, if that's possible. You also need to note that certain existing businesses establish time codes which make legal maneuvers such as curb cuts and turn lanes for a specific period of time.
Once you've determined the impact of access to your property's value, you will need to study the demographic data for the area. Demographics play a vital role for all property types as the nature of the community tends to greatly affect property values. For example, an area that is popular with families because of its close proximity to a good school, will highly value an apartment building that is designed to house families.
A good school does not affect only apartment buildings though. A good school affects numerous business types, for instance think of all the possible businesses which deal with families. So if you have a restaurant in the area, you might profit more if there is a good school around. Similarly, if you have an office building, commute time to and from the building may be affected by the traffic caused by the school.
Hence, we now move onto our fourth factor in assessing real estate, i.e. traffic. Traffic plays a key role in determining any property's value as it helps decide the property's ease of access and view. You will need to establish the traffic count for your area at different times of the day as well as decide when traffic is coming towards your property and when its going away. To make life simpler for yourself, you should contact your local city or county department as they usually conduct traffic counts. If possible, try and get your hands on older traffic count reports as well as this will allow you to gauge changes in traffic trends. Remember to also keep up to date with plans to build new transport routes as they might affect the flow of traffic to and from your property.
However, all these factors need to be looked at in terms of the property's use so that an accurate value can be assessed. Once you have determined the main use for the property, try and see how the above factors will affect the use. Based on that, you should be well on your way to making great property investment.
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Jafer Ali Shariff
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Web: http://blog.ira-401k-realEstate.com
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Keywords: Real estate Investment, Finance, Business
View Count: 73
Date Submitted: 8/29/2008
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