What principle in real estate appraises the value based on its location?

Situs refers to the location of a property and is a crucial concept in real estate that directly influences its value. This principle emphasizes that the specific physical position of a property can greatly affect its desirability and market value. For example, properties situated in desirable neighborhoods, close to amenities or with scenic views, are typically valued higher than those in less desirable locations.

Understanding situs helps appraisers account for the various factors that contribute to a property's worth, such as proximity to schools, shopping centers, public transport, and other local infrastructure. These locational advantages can significantly enhance a property's attractiveness to potential buyers, thereby impacting pricing strategies and investment decisions.