Dominate Real Estate Value

[Janos Sztojka]

Next is the government subjection, accounting for a large aspect of real estate value.
This includes political and legal activities on several levels of government. These
government influences have the power to overwhelm natural market forces such that you
would find in the economic category. Government has their hand in providing facilities and
services that affect values as well as a one of the main contributors to patterns of land
use (zoning, by-laws, etc). The following are some things to look out for when assessing
the government subjection of a market; fire and police services, garbage collection,
transportation arrangement, utilities, zoning, building codes, health codes, and fiscal
policies. Also the legislation that is set forth by the governmental factor must be
accounted for, this would include; rent control laws, rights to farm, rights for managing
forest, rights to agricultural land, restriction on ownership, new development laws,
control of hazardous and toxic materials, and laws affecting investment power, loan terms,
and mortgage lending institutions. All in all this is quite the category and its
understanding will provide for a great idea of where values are currently and where they
are headed.