Property Value Criteria

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From ZAMAN:

Factors affecting real estate value

Some of the important factors affecting real estate values are people’s feelings, the financial and spiritual value accorded to physical property, and societal, economic, political and general financial situations.
For every piece of property, there can be different factors at work on the value given it, and these factors can make themselves felt in distinct and different ways. It is difficult to systemize these factors, but there are some basic aspects that do in fact directly affect property values, and these are accepted by everyone. Below is a basic categorization of some of these factors:
It is widely accepted that certain legal standings and orders have an important effect on the use and the economic value of a piece of property. For example, a property’s status and purpose can be changed by a law allocating the property to public works and/or public service.

When a piece of property is being evaluated, it should be examined from the perspective of the property and construction laws and rules of the region in which it is found. Pieces of property that lie within city limits regulated by specific city planning are directly and clearly impacted by local construction and public works laws. In terms of the laws and usage restrictions that apply to property lying within city borders, there are significant advantages and disadvantages of which property purchasers should be aware.

The general aims of the regional construction and development plans for the area in which the property is located are at the top of the list in terms of factors affecting the property’s value. For this reason, it is vital to immediately identify which plan dictates the use and goals of the area in which the property lies. This includes identifying whether the property has been set aside for residential use, development or public use such as trade, industry, apartment buildings, road, city square, green area, park and/or parking lots. It might also lie in an area set aside for official buildings like a school, hospital or mosque. Factors that define the property’s parcel front and structural code also need to be identified. This includes elements such as how many floors are allowed in a building built on the property, what the foundation size is allowed to be, what point a building built on the property can reach out to and what the property lines are. In order to make these evaluations, documents need to be obtained from the municipality, which show the official plan for the particular parcel, the size of the surrounding gardens (if applicable), the building codes, etc.

Another vital factor affecting property value is whether or not there are any legal claims or limitations in place on the property. This can be identified by careful examination of the documents concerning the property’s deed. Any cases of liens or claims on legal, deeded properties must be noted in the property’s deed papers; otherwise all proceedings that follow will not be legal.

General location of property

One of the most basic points to be taken into consideration when evaluating property is the site on which the property sits. The location of the property will be included in the evaluation of the actual property itself when trying to determine the value.

Factors such as what the general topography of the location is, whether it is in a city or province, what the green space in the area is like, what the biological and economic infrastructure of the area is, whether it is near social, cultural or green areas, what the local transportation is like, whether it is a noisy location or a location with a view, what the local infrastructure is like and many other factors like this all play a great role in the value of the property. Especially these days, with cities sprawling so rapidly, factors such as whether a property lies near education, health, social or religious buildings plays a large role in the value of the property, as the demand is so high. Also to be assessed is what the local population around the property is like, what the social bedrock and demographic picture is like. These all play in the property’s value. For example, in Turkey, it is often seen that the property value in neighborhoods where state officials, artists, businessmen and other people of a certain level live attain a much higher level than other neighborhoods.

Another factor affecting property value is whether the property’s geological infrastructure and is suitable for building upon. The soil and ground infrastructure of the property and its durability and resistance need to be scrutinized prior to purchase. One example of this would be whether a property’s soil lies over rock or wetland. This has a huge effect on future costs to the property, and has an impact in terms of whether the property lies in a region prone to earthquakes or other natural disasters. Sometimes a certificate is required from a geological engineer before starting to build on a property.

Particularly in the case of empty land parcels, the geometrical structure and size of the land is often of a character that will affect any buildings planned later for the lot. This can include elements such as the number of exits and entrances onto the property, how many corners the property has, whether it is long or short, whether it is narrow or wide and of course what the neighboring properties are like and whether any financially expensive ventures such as legal re-ordering and defining of property lines will have to be entered into.

Before determining the value of a certain piece of property, first the kind of property and its basic characteristics must be determined. Whether it can be built on, and if so, what characteristics its buildings might be required to conform to; these are the most basic elements that need to be definitively uncovered before the evaluation of a property.


21.06.2007
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