Since you started in the real estate business, instructors and other agents have talked about the importance of location when evaluating property. Now it’s all about Location-Location-Location + Timing & Demographics.
The market during the last 8 to 10 years has been so volatile that it has made it necessary to look beyond just location. When the market was increasing at a rapid pace people were paying very little attention to where a property was located. Developers and builders purchased ground wherever they could find a reasonable price allowing them to produce residential or commercial units that could be sold at a reasonable price.
During the last few years with prices falling, sales falling and new development at a standstill, the right location is also being overlooked and people are looking for the “steal”. At both ends of the market people were looking at what the market was doing in the short run. As the market stabilizes it will be time to get back to basics and location will again be king. But along with location I would suggest that there are two other elements that need to be considered when evaluating property. Along with Location a person needs to consider Timing and Demographics. The last 10 years make a strong case for timing and its’ importance. Even properties in good locations suffered in the downturn. These properties should rebound quicker but if an owner, for whatever reason, needed to sell he would have been a victim of the market at that time. The other important thing about timing is the changes over time. We have all seen areas that have gone through big changes causing prices to adjust either up or down. Things like a road realignment can have an effect on the value as it relates to a specific location. That brings us to the third element – Demographics. This is a very important element when dealing with commercial property. Looking at things like household income, age levels, marital status and buying trends. The number of children and rate of unemployment are also items that need to be evaluated. Is there an increase or decrease in population and is it higher or lower than the surrounding areas.
I have the answers to these questions. If you need them, call me. I can help. Thats what I do. Remember!
Location – Timing – Demographics. All three work together and overlap each other. In the market we are experiencing currently it is more important than ever to evaluate property using all three.