Real-Estate Key Values

This is how you will check out your next real-estate transaction…


A general value-scale for offices and high-tech entities in direct proportion to rentpurchase price:

• Preference value: The buyer’s preference for the property andor a specific neighborhood.
• Market value: The price obtainable in a perfect market.
• Supply and demand value: The relationship between the property’s availability in an
  inverse relationship to the land available at the same area for the same use.
• Absorption value: The proximity of the property to a regional activity center – mutual
  improvement.
• Benefit value: The availability, the special location and the special status and/or the
  functional design required by the buyer.
• The surrounding population value: The level and cross-section of the population and its onrush into the area.
• Equilibrium value: The relationship between the property and other properties in the same
  areas.
• Conformity value: Use according to the neighborhood.
• Expectation value: Future income from the property and the expected saving on rental
  expenses.
• Income value: Producing square meter compared with the rental or purchase expense of
  the same square meter.
• Development value: Preliminary or significant or downward decline.
• Competitive value: Excessive profit, onset of entrepreneurs, decline in consideration.
• Flow value: The access to the property – developed or deserted.
• Urban planning value: Environmental architecture, uniform landscape, obstacles.
• Accessibility value: access, development of transportation access, public transportation.
• Security value: A secured area, illuminated, commercial, cultural and night life (zonal mix).
• Functional value: The use of the property for various possible purposes.
• Parking value: public parking lots, area parking, parking offered by the property.
• Authorities’ access value: Flexibility on building and planning issues, taxation.
• Specification value: The exterior and interior finishing style and quality of materials.
• Property value: indoors parking, electrical power, light in the units, control over air- conditioning and the hours of its operation, entrance lobby, security and cleanliness, maintenance cost and standards, difference between gross and net usable area, window finishing, airflow directions, elevators, natural lighting, postal and banking services, travel agency services, feeding services, proximity to hotels, the age of the property, the standard
  of the apartment, the reputation of the property, the owner, the type of ownership, the character and appearance of the property, relative advantage over other properties.
• Physical depreciation, functional, economic.

The above is not an exact science but can definitely be a reliable guideline for a professional estimator as a tool for advising on various real-estate transactions.