In my last post, “Real Estate Alphabet Soup: W is for Warranties” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter X.
I knew when I started to stir up this “alphabet soup” that the letter X would prove to be a challenging ingredient to mix into the soup. And now that I have reached this step in the recipe, that challenge still stands, but I’ll do my best to be a creative cook.
X is for “X-factor.” Yes, with real estate, and particularly when deciding whether to purchase real estate, there is usually some eXtra, eXtraordinary factor which impacts the ultimate decision to purchase a property.
There is an old adage among real estate agents that the three most important things about real estate are “location, location and location”. For a residential property, that may mean a desirable location near local parks, convenient shopping and amenities, public transportation, or within the best school district. For a commercial property, that may mean a property located within the correct commercial zoning area for the intended business use of the property, with adequate road frontage, accessibility, parking and visibility for maximum commercial exposure and benefit. For an agricultural property, that may mean a property with the best soil quality, tillable acreage, outbuildings, and access to water for livestock.
Another X-factor and common term in real estate is “curb appeal” which, in addition to the location, makes a property desirable. For a residential property, that may mean a particular style of architecture, landscaping features, or the proverbial “white picket fence.” For a commercial property, that may mean a space or pad site within a well-designed, attractive shopping center or in a “class A” office building. For an agricultural property, that may mean red barns set against a backdrop of beautiful lush green pastures.
Other X-factors may include significant historical or architectural features, a historic provenance, or a location within a designated historic district, which may be desirable to some purchasers.
Whatever the individual “X-factor” may be, there is often some specific or unique property attribute that makes a property stand out from others and causes a potential purchaser to sign and put their “X” on the bottom line of the contract.
In my next post, I will move on to the letter “Y”, the next and penultimate letter in this real estate “alphabet soup.”
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