The economic value of the real property either increases or decreases through the passing of time.
This dichotomy of effects should be understood in order to fully grasp the ups and downs in property management.
It is also imperative that the person is familiar with the essential factors that either improves or lowers the market value of the property.
There are actually two categories that one can determine in understanding the elements that affect the market value of any property.
These are the internal factors, which refer to the natural decline of quality and strength of the object or the improvements of the same and the external factors, which refer to the economic condition of the area where it is situated.
These factors both affect the market value of the property with or without the presence of one another.
These are independent elements that either push or pull the price of the property.
Admittedly, real estate properties are also considered as investments.
Although one does not expect too much return from housing or residential ownership, the person however desires to fully benefit through quality home living, magnificent interior design and landscaping, comfortable amenities, and many more that one's house can possibly provide.
In addition, the homeowner also desires to sustain if not improve the market value of one's real estate property.
In dealing with this issue, it is important to consider the two types properties involved, namely the real and personal properties.
The real properties include the house and the land to which it stands.
The personal properties are those fixtures, movables, and decorative materials that have with them economic values.
Considering the internal factors that affect that market value of these properties, it follows that these personal properties are the first to get affected by natural effects of decline of quality, strength, and luster.
Since these fixtures and other movables that belong to the class of personal properties easily get replaced, unless there is an extraordinary sentimental or historical value in it such as its antiquity, their market value also quickly lowers as time goes by.
However, on the part of real properties, only the house absorbs too much effect from these internal factors of determining the market value.
Although the improvements on the land such as the residential building also affect the value of the former, it cannot be gainsaid that once there is a structure on the land that the price of the same automatically increases.
This is not the case for land because of the fact that these improvements on it also have their own market values such as the buildings built upon it.
But since the land has no accessories and no inherent part of it that declines in quality other than the soil itself as well as the minerals in it, then it is no wonder that internal factors do not really affect so much the market value of this real estate property.
Hence, it is important that the person manages one's property accordingly so that the undesirable effects of both the internal and external factors that determine its market value is properly cushioned if not avoided hence sustaining such value of the property overtime despite all odds.