- The four major factors that affects real estate values are physical forces, social forces, economic forces, and political forces.
A Real Estate Broker, through experience, can tell trends in some specific geographical locations.
Physical Forces
- Natural Resources
- Developed Resources
Social Forces
- Family size and age-group distribution
- Neighborhood stability and attitudes about property
- Population growth, decline, or shifts at the community, regional and national levels
- Life-styles and living standards, often combined with other forces
- Attitudes about law enforcement, the role of government and individual responsibility
- Attitudes about development, growth and ecology
- Attitudes toward public education
Economic Forces
- Income level or neighborhood and community residents
- Employment opportunities and trends
- Level of wages
- Availability or money and credit, and interest rate levels
- Price levels and property tax burdens
- Personal savings and investment returns
- General business activity
- Supply and demand in housing
- Production of goods and services
Political Forces
- Zoning and land-use regulations
- Building and safety regulations
- Environmental protection laws
- Police, fire and health protection services
- Crime preventions, education and recreation services
- Public works; power, water, transportation, sewers and flood control
- Fiscal policy and taxation
- Monetary policy and controls
- Government-sponsored urban redevelopment and housing finance programs
- Regulation of industry and business
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