What determines the value of a property?

The value of a property is determined by a combination of its physical characteristics and the rights associated with it. Physical characteristics include attributes like size, layout, age, and condition of the property, all of which contribute to the property's marketability and desirability. The rights associated with the property, such as ownership rights, access rights, and zoning, also play a significant role in its value because they dictate what can be done with the property and how it can be utilized.

While market demand, location, and timing of purchase all influence property value, they are not the sole determinants. Market demand reflects how interested buyers are in properties similar to the one in question, and location significantly impacts desirability due to factors like proximity to amenities or school districts. However, these factors operate around the core physical characteristics and rights, as they provide the foundational aspects that appraisers and buyers assess when establishing value. Thus, a nuanced approach that considers both tangible aspects and legal rights ensures a comprehensive evaluation of a property's worth.