The real estate market is constantly evolving, so it’s important for real estate agents and investors to stay informed. Location is a key factor in real estate that many people overlook. It doesn’t make sense to invest in a piece of property if there is nowhere for people to actually use that property. What’s more, some properties will always sell better than others simply because they are in a more desirable location. Below, Canadian real estate developer Jack Bistricer takes a look at why location matters in the world of real estate:
Real Estate Is All About Showing Potential
Every real estate investor will tell you that location is everything when it comes to a property’s value and appreciation potential. The location of a real estate market often dictates its demand. The property’s value may hold up – and even increase – over time if it is in a desirable neighborhood. The value of a location will increase as the demand for it grows.
Location Is King in the Housing Market
Real estate agents can often promote their listing based on location, location, location. However, this doesn’t work well for homes. It’s extremely difficult to show potential buyers that a home is near a particular location if there’s not a single photo of the house in that location. If you have a listing that is located in a less desirable part of town, it’s going to be a lot harder to get people to come see the property. As Jack Bistricer explains, this is because most people don’t want to be reminded of how far they’re from their ideal location. Real estate agents in less popular areas of the country may actually find it more beneficial to have a location that is more desirable because that part of the country is almost certain to see a rise in property values. The housing market is an important factor for agents to consider because it can make a huge difference in the amount of money you earn as an agent. If a lot of people are moving to your area, it can drastically improve your market share.
Location Matters in Commercial Real Estate
Real estate agents that are based in popular residential areas are often well aware of what properties are selling for in their area. They are in a position to know the demand and supply of properties in their area. This allows them to target potential clients with their listings and provide them with an estimate of how much money they can make. However, real estate agents that are trying to find a spot in a less popular location are at a major disadvantage. It’s hard enough to make a sale in an area that is relatively popular, so it’s even more difficult to find a spot in a less popular location. Commercial real estate agents may want to take note of these statistics. The amount of land available in a commercial area is one of the biggest factors in determining the rent you will charge for that space. It’s much harder for a commercial real estate agent to find a spot in a less popular commercial market.
Understanding Your Niche Will Help You Find Your Location Advantage
Another reason why location is so important in real estate is that you can use it to establish yourself as a leader in your niche. For example, Jack Bistricer, the Chief Executive Officer of Talisker Club ads, if you are based in a popular city, you may want to consider branching out and finding listings in a less popular area. You need to consider the demand and supply of properties in less popular areas, but you may be surprised at the demand. If you are based in a less popular part of town, you have the opportunity to build your reputation and become a leader in your niche. That alone can make a big difference in how your business is perceived by potential clients.
Final Words
Real estate is a complex industry that requires a lot of effort and time to succeed as an agent. If you want to make money in this business, you need to make sure you get the locations and listings right. This can sometimes be a challenge, especially when you are based in a less popular part of the country. But the good news is that you don’t have to be based in an area that is very popular in order to make a lot of money as a real estate agent. You just need to find the location advantage and understand your niche.