Real estate has several unique characteristics that affect its value. There are economic characteristics and physical characteristics. Real estate is a product to be purchased but it is different from anything else due to the characteristics that will be discussed here.
The economic characteristics that influence value are scarcity, improvements, permanence and area preference. Scarcity is simply demonstrated in the saying, "They aren't making any more." The supply of land has a ceiling and cannot be produced more than what exists today. This value of this supply however, is influenced by other characteristics.
Improvements, such as buildings on one parcel of land may have an effect on the value of neighboring parcels or the entire community. If a large company builds in a certain depressed neighborhood, the value of living their will probably increase because of the introduction of jobs. This value would impact on neighboring communities, thus increasing value in some ways to the real estate in these areas.
Permanence has to do with the infrastructure. As buildings, houses or other structures are demolished, the infrastructure, such as sewers, drainage, electricity, and water remain intact. Permanence effects real estate, or the type of infrastructure. If you buy a piece of land in an area with no utilities, drainage or paved streets, it will most likely be worth less than a parcel of land that has this infrastructure intact and developed.
Area preference refers to the choices of the people in any given area. This is usually referred to by most people when they talk about real estate as, "location, location, location." The location of a preferred area, for whatever reasons, is what makes values of homes higher. Conversely, the location of a nonpreferred area, for whatever reason, is what makes the values of homes less. 8000 square foot brand new homes on the coast of Long Island's, East Hampton will be worth much more due to their area preference, over an area with 1200 square foot starter homes in the middle of Long Island, located next to a garbage dump.
The physical characteristics of land represent its indestructible nature, immobility and nonhomogeneity. Working backwards, we'll start with nonhomogeneity. This simply points out that no two parcels are the same. Two pieces of land may be very similar, but every single parcel is different geographically because each parcel is located in a different spot. This includes two lots right next to each other. It is important to remember that parcels are created by subdividing land, so as one large parcel of 20 acres is subdivided, each individual lot becomes its own separate piece of land.
Land cannot be moved, therefore it is immobile. Even when soil is torn from the ground, the part of the Earth's surface will always remain. It is important here to note how this physical characteristic affects real estate law and markets. Immobility of land is the reason why real estate laws and markets are local in nature.
The indestructibility of land simply means that it is durable and cannot be destroyed. It can be damaged by storms and other disasters, but it remains and weathers the changing times and will always be there. This is a main reason why land is talked about as being a sound investment.
So the basic characteristics of real estate include scarcity, improvements to the land, permanence, area preference, nonhomogeneity, indestructibility and immobility. Please note there is a big difference between land and real estate. Land is the the part of the earths surface, subsurface and air above it. Real estate is anything that becomes attached to land. So when you're looking for investments, it is important to note the infrastructure of the area, the surrounding neighborhood and the preferences of the area or...location, location, location!
Selling real estate in a lot of cases can be difficult. Most people are picky when it comes to buying property. There are some things you can do to make a property a bit easier to sell. One thing you can do is give some of the rooms a new paint job. This, if done right can make most rooms look more inviting. When painting the best thing to do is pick a neutral color, an off white or something close to that. You do not want to scare off potential buyers because of the color of the walls.
Another thing you can do to make a property a bit easier to sell is change the tiles in the bathroom and the kitchen. With the bathroom and the kitchen you can get a bit more colorful. It is recommended to stay within two to three colors. If you use too much different colors the property may get even more difficult to sell. A wise thing to do is ask people you know for their honest opinion when picking out tiles.
One last thing you can do to make a property a bit easier to sell is throw in some accessories with the sale of the property. You can throw in a lawn mower, a computer, a television or anything you think some phan rí cửa one can use with a new home. Make sure if you are giving something with the sale of the property that you are giving away something brand new. The last thing you want is someone to think your giving them something that you don't want. Selling real estate can truly be difficult in some cases but if you use some of the strategies you read about here you can make the process a bit easier.