Why Location Is so Important in Real Estate | Moving.com
What’s the most important thing about real estate? Any Realtor will tell you, it’s “location, location, location.” Believe it or not, the location of a home is the single most important factor to consider when looking for a new home. You might find a beautiful house that has all the space and amenities you need, but if it’s located in less-than-desirable neighborhood, you’ll likely have trouble reselling the home in the future. In addition, while you can change practically everything else about a home (think: finishes, number of bedrooms and curb appeal) through renovations and upgrades, you cannot change the location. This feature remains static and therefore, should be top of mind when purchasing a home. So what makes for a “good” location? Here are five important factors to consider when assessing a home’s location.
Why location is so important in real estate
These five locational factors affect the resale value (and overall property value) of a home.
Is the home zoned for quality public schools? Is it located near well-regarded private schools? How is the overall local school district? These are questions to consider when assessing a home’s location and potential resale value. This is especially true if the city you live in is family-oriented, and if you have school-age children. Remember, though, that even if you do not have school-age children, the quality of the schools remains an important consideration. Owning a home in a good school district is one of the best ways retain and grow your home’s value. If you live in a snow-bird, retirement-focused community in Florida (just as an example), then the quality of the schools may not be as important. Be sure to do your own research on the community’s buyer pool and local schools before purchasing a home.
Crime and safety should be top of mind when evaluating a home’s location. After all, no one wants to live in a neighborhood where crime and danger are rampant. Thankfully, it’s fairly easy to find local crime reports and crime rates on the internet. In addition to various crime report websites, such as Family WatchDog, Neighborhood Scout and the National Sex Offender Public Website, home buyers can also check their local Nextdoor.com public forum to find out about local reports on burglaries, thefts and more unfortunate crimes that occur in their area.
Amenities and transportation options
One of the reasons why location is so important in real estate is that buyers often want and need close access to amenities and transportation options. This means relatively close proximity to restaurants, grocery stores, dry cleaners, shopping and entertainment. It could also mean a home situated near important roads and public transportation options, such as bus stops, subway stations and public bikeshare locations. When looking at a home, be sure to assess how close the home is to these important amenities. Unless you’re looking to buy a vacation home on an almost deserted island, close proximity to amenities will typically improve a home’s value.
For better or for worse, you can’t change your neighbors (unless they decide to leave on their own accord). If you have less-than-desirable neighbors, such as a fraternity house or neighbors with loud, dangerous dogs, this could negatively affect the resale value of your home. Before buying any home, you should spend ample time in the neighborhood. Take a walk down the street and try to meet the neighbors if you can. You should be able to get a good sense of who lives there simply by spending time in the area. Resale value aside, it’s also a good idea to look at the neighbors for your own sake. Do you prefer to live in a neighborhood with young families or retirees? Are you looking for a tight-knit community feel or a less neighborly community? These are personal preferences that are important to consider when buying a home.
Future appreciation potential
As any real estate investor will tell you, location is key when it comes to a property’s value and future appreciation potential. The reason? Oftentimes, location dictates the demand in a real estate market. If the home is located in a desirable neighborhood in a location where people are moving, then you can expect the home’s value to stand the test of time – and even appreciate – throughout the years. As the demand for a location increases (and as the location improves), the appreciation will also continue to increase.
What are other important factors to consider besides location?
There are plenty of factors to consider when house hunting for a new home. Here are several key features to keep in mind – besides location, schools, amenities and neighbors.
Ready to move?
After considering the sizes and locations of various homes, you’ve finally decided on a place to call your own. Congrats! Now it’s time to start planning that move. Fortunately, Moving.com’s extensive network of reputable and reliable movers makes it easy to book the best moving company for the job. All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands. Best of luck and happy moving!
This content was originally published here.