Real Estate Valuations and Property Location

When performing a real estate valuation, the first thing an appraiser does is to evaluate the property location. A property value is determined by the property's form, function and most importantly, its location.  

Public Services

Properties located in close proximity to important public services will always be valued higher than similar properties further away from those services.  For instance, a single family home with access to major public transportation, good schools and shopping areas will be valued higher than the a similar home in a rural area many miles from those same features..

Geographic Landscape

Some geographic locations are naturally more desirable than others.  Property located near a city's special natural features can often be valued higher than property further away. Coastal towns with homes located on or near the water will always be valued higher than homes located four or five miles from the beach. Similarly, homes on the mountain are usually valued higher than homes located in mass developed regions near the flat valleys.

Neighborhood Safety

Safety is also a big concern for many property owners.  Property location relative to crime can have a big impact on value. Property in high crime neighborhoods will be valued less than a similar property in a crime free neighborhood. When it comes to property valuations and property location, the property located closer to the desirable amenities will always be valued higher than homes located further away.

 

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