Why Do Real Estate Values Fluctuate?
Any or all of the following factors are in a constant state of flux and are important in determining the true value of a property. Please consult a real estate agent for further details on how you can use this information to better understand the process and attend to your own personal needs.
Location
- Location, Neighborhood, Climate,Schools
- Proximity to Shopping, Healthcare, Culture
- Proximity to Water, “Property” or Land characteristics
- Natural surroundings, topography, power lines, view
- Density of population
- Residential area, not commercial,industrial or mixed use neighborhood
- Town Services and local taxes
- Crime
General Economy
- General economy, Inflation and the value of the Dollar
- Supply and Demand, available inventory
- Employment
- Business Cycles
- Type of Market (Buyer, Seller or Balanced)
- Multi-year Trend, Intra-year cycle (seasonal factors)
- Present cost to rebuild
Government Policy
- Interest Rates, availablity of financing
- Government Interference
- Inflation or Deflationary Trends
- High Taxes
Current Trends and Fads
- Kitchens and Baths
- Staging and Illusions, Cosmetics, Landscaping
- Floor Plan, Obsolescence of Home, Age of Home
- Condition of home, Features and amenities, Quality
- Type of Market (Buyer, Seller or Balanced)
Human Emotion and Motivation
- Motivated Sellers (People problems or Home problems)
- The Appraisal factor, Available Bank property and Foreclosures
- “A reason to be there”
- Fear and Greed
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