The purchase of real property is a unique transaction. Not only is the expense of a different scale and magnitude than other purchases, but also the value of property appreciates and depreciates dependent on factors different from those applicable to personal property. For instance, when a car is driven off the lot the value immediately drops, and the more miles driven, the less valuable the car becomes. Until that car becomes an antique, its value will continue to depreciate with age. The buyer hopes that the car is worth its price because it runs fast enough, long enough.
Uniqueness of Real Property
Real property is different. While structures and fixtures on the property do depreciate similar to a car, the value of the land is not based on a date or time. Purchasers understand that renovations, upgrades, and new structures can greatly alter the price of a property. However, desirability and demand in the area are the biggest controllers of a property’s resale value. Demand is measured by comparable sale prices in the area during a certain time period. Ultimately, the value of a property is largely about location.
Introducing international borders into the mix means there is a new set of considerations when buying or renting real property. Real estate agencies that specialise in international sales, purchases, and rentals are adept at explaining local property laws, advising international clients, and assisting in property purchases that take place far from where the property is located. More information on such real estate agencies can be found at senseproperty.com.
Purchase and Lease of Residential Space
A private residence often represents the majority of a person or family’s individual wealth. It is a huge investment that must be lived with, literally, for months and years. International homebuyers must be more careful than domestic purchasers. Variables such as exchange rate and political climate can affect the price of a property from day to day, unbeknownst to the average person. To eliminate many of the risks associated with buying or leasing an international property, work with a real estate agency that has knowledge of the local market and can negotiate the sale or lease.
Purchase and Lease of Commercial Space
The amount of research and thought that goes into choosing a commercial space is staggering. Unlike residential homes, the comparable prices for commercial buildings must meet more specific criteria and differences in the buildings have serious effects on the analysis. For example, real estate professionals want to know if the comparable building was eco-friendly, primarily used for office space, and located on a street corner near public transportation, among many other things.
Real estate brokers are skilled at comparing these data points and making adjustments for differences. When buying in an unfamiliar market it is impossible to know how much differences in these data points should and will affect the value of a property. This is where a real estate agency familiar with the market must advise a buyer.
Commercial leases are very similar. Often these leases are long-term and can have a huge impact on a company’s bottom line. Commercial leases are also difficult to break, and companies can stay locked into a bad lease for many years.