In assessing property, what does the term 'location' primarily affect?

The term 'location' primarily affects market demand in property assessment. Location is one of the most significant determinants of property value because it influences various factors such as accessibility, neighborhood amenities, school quality, safety, and proximity to employment centers. A desirable location can increase a property's appeal and desirability among potential buyers or renters, thereby boosting market demand. When a property is located in a sought-after area, it can command higher prices and attract more interest compared to similar properties in less favorable locations.

While other factors like physical condition, building design, and renovation potential are important, they often take a backseat to the effects of location on market dynamics. For example, a well-maintained property in a prime location is likely to be valued higher than a similar property in a less desirable area, even if the latter is in better physical condition or has appealing design features. Ultimately, the choice of location sets the stage for how the property is perceived in terms of market demand.