The factors that affect the value of real estate are generally obvious once they are at work, causing real estate to rise or fall in value. It is important to understand exactly what those factors are and how they can cause the value to move either up or down. The key to success in commercial real estate is to use this knowledge in determining when and what to buy, and how to maximize your profit on a sale. Interestingly, the same factor can cause one property to go up in value while causing another similar property in the same town to go down in value, even if it is just across the street.

Ironically, most of the factors do not just suddenly appear. They are elements that have been in place for years, such as local zoning or building codes. Those and other factors may not be noticed or their real impact not unleashed until the owner of a property attempts to take advantage of what he previously thought was the property