For Sale By Owner Tips

Find Your Best Location. Mathematical Approach?

Find new property is not easy and most stressful part to decide.  For a company, the objective of location strategy is to maximize the benefit of location to a firm.  It is same condition when deciding to purchase your new home too.  We always need great benefits but low cost .. right? So it’s important to analyze the location before you decide to throw your money on that location.  Don’t know how to analyze?  Let’s use this simple approach in evaluating your new potential home or business location.  It is called “The Factor Rating Method”.   Factor Rating Method is one of the popular approach because a wide variety of factors can be objectively included.  Follow these steps:

1.    Identify a relevant factors called Critical Success Factors (CSF).  Ask yourself what are important factors to your new property? Then list down.

2.    Assign a weight to each factor to reflect its relative importance in your objectives.  Small weight for less important factor and vice versa.

3.    Develop a scale for each factor ( example 1 – 10 or 1 to 100 points).  You decide!

4.    Visit the location then do your evaluation. Identify score each location for each factor.

5.    Multiply the score by the weights for each factor and total the score for each location.

6.    Make a decision based on the maximum point score.

Example :  Currently you are working at Bangsar and your spouse is working at Klang.  You’ve found 3 places that affordable to your budget range from RM 120,000 - RM 150,000.  These locations are:

 A – Section U2, TTDI Jaya Shah Alam

B – Section 19, USJ

C – Subang Suria, Section 5, Shah Alam

 Based on analysis the highest score identified as location A or TTDI Jaya Shah Alam.  Total score for this location is 8.2 or 82%.  So the priority of your investment should be location A followed by C and last priority is location B.   

 This is rough idea when deciding your new property location and also can be applied in business operation.  We will discuss another evaluation methods in next topics.  Keep visiting us at www.landlord.com.my.