Before the agent finalizes the price on a property, it is wise to check with the owner and the owner’s solicitor that there are no other matters that the agent might not be aware of that will affect the achievable market price.
• Are the structures compliant with local council building requirements?
• Are there disputes with the neighbors about the boundaries, retaining walls or the construction of a dividing fence?
• Is the property infested with termites?
• Has the property been subjected to flooding, slippage or contamination?
How would you discuss this discrepancy in price with the property owner?
Economic forces relate to the financial strength of the economy and whether people are financially well off to be able to purchase a property and service a loan. Economic factors are heavily governed by political considerations. For instance, government policies have a direct impact on economic destiny, both at the federal and state level. Economic factors can include:
The physical features and characteristics that make land so valuable are both man-made and natural. The desirability of land that makes it such a highly sought commodity relates to factors such as:
The climate. Is the area subject to the tropical heat, or is it miserably cold?
Does it suffer from cyclones, monsoons, blizzards, tornadoes, etc.?
The proximity to desirable features such as cities, water, mountains, plains etc.
The availability of water, mineral deposits, fertile soils
Whether the land floods and if there are some man-made controls over that factor (e.g. The Netherlands)
Environmental and conservation issues. For instance, can the land be used?
Is the land eroded or suffering from salination?
Are there measures in place for soil preservation and improvement?
What type of buildings can be constructed here? Is it an earthquake region? Does it suffer from bushfires? Or is it a slippage area? The value of land will fall significantly, for instance, after a major disaster such as a flood, bushfire or landslides. Get Marketing homework help today
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