Anyone who has made a real estate investment in the past would be cognizant of the fact that the value of a property is determined by a variety of factors, one of the foremost amongst them being location.
When people invest in a property, the first point which they check out is the locale because they either intend to settle down themselves or plan to lease it out. In this regard, research has revealed that a property which lies within close proximity to schools, shopping complexes, work place and other amenities is higher priced as compared to one which lacks these advantages. Location is inclusive of the quality of neighborhood and the nature of surrounding properties as well.
Using various data resources is another method in which the real estate value can be determined. These usually comprise of local tax, listing services and housing price index and can be acquired from reliable and reputed housing agencies for conducting a comparative market analysis. By tracking sales prices prevalent in a particular area over a period of time like a month, three months or six moths, the investor can decide on the offer price as also estimate the amount of appreciation which is likely to occur.