Some land characteristics influencing its value
What land characteristics might influence its supply and demand, and hence its value?
Last week we learned the importance of land as the basic component of real estate. So let’s try and understand what gives that basic component its value.
Watch and listen to property expert Tony Crabb talk about his views on how some of the demographic changes may have influenced Real Estate prices in Melbourne, Australia. Can you identify any such patterns in your city?
Below is a list of some of the more obvious characteristics that influence property values. These assume that the land is for residential use purposes, but it may not be:
- land size
- proximity to schools
- proximity to shops
- proximity to transport and note how over time a characteristic such as this, may alter from being a “not sought after characteristic” to being a “sought after characteristic”.
- soil classification.
We will discuss this more in the next step.
This step requires you to upload your responses to this task to a Padlet Wall.
Gather all the components of this step together and then post your response onto the Padlet Wall. Look at what other students have posted and feel free to comment on their posts on the Padlet Wall or in the Comments area here. Access this web page for instructions on how to use Padlet.
Using the block of land you found in the previous step, consider some of the attributes or characteristics of the land and consider what might influence the land value and in what the influence would be whether increase or decrease the value (for example larger block size, higher land value). Can you identify any other characteristics that you feel may influence land value?
- Post the link or description of the residential block of land.
- Identify and explain four characteristics that might influence your desire to buy this property at the price that is being asked.
- Identify and explain how these same four characteristics might influence the present owner to sell the property at a particular price that you might want to offer.
Here is the seed to the notion of a willingness to buy (or a willing buyer) and the willingness to sell (or a willing seller) that you heard Neil Hollingsworth talk about in the valuation profession last week. A willing buyer and a willing seller will settle on a price at which each of them believe to be the value.
Read through some of the posts made by other students. Would you be willing to pay the same price for that property? Would you consider some other factors in making your decision? Share your thoughts in the Comments area. Look at some of the comments that other students have “Liked”, and look through the comments made by the students you have “Followed”.
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