You can buy land on the moon for at little as $12.47 per acre. I'm serious. You can find a number of sites on the Internet willing to sell you real estate in "desirable" and "prime" locations on the moon. At these prices it's hard to resist. Apparently one also receives some sort of deed or other "official" paperwork commemorating your speculative extraterrestrial purchase.
Irrespective of the lack of an atmosphere and the specious legitimacy of selling parcels of Earth's closest celestial companion on the Internet, one may ask oneself why a 100 foot by 100 foot lot in Manhattan can sell for more than $100,000,000.00, yet the same sized lot can be snapped up to expand our embryonic lunar estate for a mere $2.86?
The answer is the oldest cliche in the book: location, location, location.
Real estate is by definition a local phenomenon. In New York City, "local" is measured in blocks, not miles. It can also be measured in stories. For example, in the same building, it's likely that the same apartment on a higher floor will be more expensive than the one on the floor below it, and less expensive than the identical apartment above it.
The current state of the economy and the recent mortgage debacle affect us all, and in that way there is a "National" component of your local real estate market, but beyond that the primary forces that affect real estate prices are in fact... local.
If you're a potential seller and you think your apartment is larger and nicer than an equivalent apartment on Park Avenue, and therefore worth more money, but your building is not on Park Avenue, think again. Conversely if you're a buyer and you've seen beautiful, large apartments in fringe locations, don't think that you'll get an apartment for the same price in a prime location. It doesn't matter if we're talking New York apartments, suburban homes, or rural farms, the same principle applies.
SUMMARY:
There are a multitude of things that appeal to people, and while location is only one of many, a great location is much more likely to appeal to the broadest demographic of potential buyers. Similarly, it can be a real challenge to sell an otherwise beautiful home in a bad location. Consider this carefully when buying, selling or renting!
Reach me at: michael.sussilleaux@gmail.com
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