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How much should you pay for your site? The answer to this simple question involves a lot of factors. Putting a value or a price on any site is difficult. The seller and the seller’s broker usually ask more for the property than it is worth. On the other hand, the buyer and the banker want to pay less than the property is worth. Somewhere in between the two camps find common ground and make a deal.

Property valuation can be a very challenging game. You do not want to get caught on the expensive side of a bad deal. However, shorting the seller is not in your best interest either because the only way to really win is if both sides are happy.

How much should I pay for an existing restaurant? How much should I pay for rent? Both are great questions that have no single right answer. Site cost is a key component to your site selection process, as are the terms of the arrangement. Market demand, regional economics, and competition for space all play major roles in this process as well.

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