Influences on Value

Appraisal theory discusses four important "influences on value," and appraisers generally review and discusse them in their appraisal reports.  The influences are the social, economic, governmental and environmental.  

The social influences are generally reflected by demographis.  Family size, age distribution and education are some of the factors considered to be social influences.

Economic influences include the consideration of available credit, income, employment and general economic conditions.  The real estate market in 2009 is significantly influence by the lack of credit availability.  Increasing unemployment, now over 9.0% in Las Vegas, puts fewer dollars into the pockets of consumers and the demand for goods and services dwindles.  The lower demand for goods and service is effectively translated in the real estate market into lower demand for buildings and land of all types. 

Governmental influences are also very important when analyzing real property.  Considered are planning documents, zoning, building codes, the availability of public services and political / legal actions.  

Environmental influences are some of the most important.  The location of the property being appraised is a very important environmental consideration.  The location of a property within its market area, its orientation, the immediate neighbors, the adjoining streets / traffic, noise (is it in a noise / crash zone?), visibility and accessibility are a few of the factors considered.

Contact us with your questions or concerns regarding influences on value or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net. 

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.