how the price of a property or piece of land is determined
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Basically by comparison and history. Property sales happen all the time, the sellers want the highest price while the buyers want the cheapest. When buying property you’re looking at what other similar properties have sold for in that area. That gives you an idea of what people are willing to pay. From there it’s just reading the market. If people are buying anything they can than the seller can charge more simply because people will pay it. Now when other people go to look at property prices, they see it’s gone up and everyone follows suit. The same thing happens when the market cools, just prices go down instead of up. There is a ton more that goes into it, but that’s the basics of it.
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