Almost sounds like an unpleasant nasal infection doesn’t it?
In reality though, this is a term you have probably heard dozens of times and have perhaps even stated yourself… but in easy to understand modern English of course:
“Location, Location, Location!!”
While traveling recently I was able to see this most important principle of real estate in full effect. A rather ordinary looking group of row homes:
In a very un-ordinary location.
Directly across the street from these otherwise modest looking Irish homes was the extraordinary; Trim Castle. One of Ireland’s oldest and largest castles still in existence.The castle dates all the way back to the 12th century and you may even remember it from the blockbuster movie “Braveheart”. It’s a massive structure of incredible importance in Ireland’s history and an engineering marvel.
As I stood in awe and admiration of this behemoth, a small sign above one of the nearby homes caught my eye. A local real estate sign stood out declaring this home was for sale, and at the top of the sign you could see the “sold” placard all sellers desire.
So how much importance did “situs” or “location” play into this real estate transaction? Not being privy to the details of the deal I can’t say for sure, but one thing that is for sure is that the number one rule in real estate always has been and always will be “Location”. A New York times writer even found a real estate classified ad from a 1926 Chicago Tribune that read “location, location, location”
It doesn’t matter whether you are an investor, home buyer, or business owner. Location will play a key role in your real estate transaction. It directly affects:
- Initial Cost of Property
- Future Sales Price of Property
- Success or Failure of Ownership
- Insurance, Taxes, Upkeep, and Maintenance Costs
It’s obvious that a property on Waikiki Beach, or in Lower Manhattan is going to command top dollar, but what basic factors should be considered when it comes to a properties location?
- Proximity and Access to Transportation and Parking
- Orientation of Land and Improvements
- Neighborhood Demographics and Education
- Distance to Amenities and Employment
Understanding how situs or location impacts the fair market value of property is critical when it comes to accurately determining a property’s current value, and for determining it’s possible future return.
