Real Estate Roundup 2
By, Mike Cooper
Real Estate is all about Location
What are the three most important factors affecting the value of real estate? As everyone knows they are location, location and location. But what is it about the location that makes it so important? We are going to explore that in this month’s article by looking at the factors affecting the value of properties here in various locations in Citrus Springs. We begin by recognizing that every piece of real property is unique, no two are exactly the same. This is recognized in the common law of England and this country which gets much of its law, especially property law from old English laws and customs.
While it is theoretically possible to build an exact replica of a home inside and out, and all accessory structures right down to the color scheme. This is extremely rare and there are always slight variations in the land, its topography, its vegetative cover, the view of and from the property, the proximity, condition of and impact of the subject property and other nearby properties and myriad other factors which can impact the desirability of a home, sometimes in subtle ways, but which in combination can make one quite similar home more or less appealing and therefore worth more or less than another. These factors need to be considered in determining the fair market value of each property, and can be an element of what is generally called “curb appeal” and relate to the immediate proximity of the subject property.
Location also relates to what Continent you are on. North America and Europe generally have higher incomes and more demand for single family homes and so higher values. The Country one is in also makes a difference. Incomes and demand and therefore prices are higher in the United States than in Mexico for example. One’s State also makes a big difference. The median home price in the West is $378,100, in the Northeast $296,300, in the South $231,300 and in the Midwest $213,000.
One’s County may also be a significant factor. Prices of comparable homes in Citrus County are significantly cheaper than in Hillsborough, and most counties in South Florida. The City, Town, Village, Community or Subdivision one is in also has a huge impact on the price of comparable properties. A comparable home in the Black Diamond gated community will generally sell for more than one in most parts of Beverly Hills, Homosassa, and Citrus Springs. Though in some parts of these communities those differences are diminishing as these communities continue to recover from the impacts of the housing market crash and the number of distressed, abandoned and unkempt properties are drastically reduced. Which brings us to the location factors which have the most immediate impact on the value of our homes here in Citrus Springs.
I mentioned above some of the what I call “curb appeal” factors which can affect the buyer’s initial impression of the property and its desirability. While some of these may have a minor impact on value in and of themselves, it is a fact that many prospective buyers will drive by a home they identify online to check out the home’s curb appeal. They will also evaluate the condition, size, tidiness and overall appearance of other homes in the neighborhood. If the subject home is in poor condition or the homes in the neighborhood are not kept up, they are unlikely to purchase in that neighborhood. Fewer buyers willing to buy, translates directly into lower prices.
Next month we’ll look at specific things which impact sales values in separate areas of our community.