Blog
The Impact of Location on Property Value
Location, Location, Location!
How It Impacts Property Value
Written by: Gina Thompson in collaboration with SDsoldbySteve
Location, location, location.
That’s what it all comes down to, whether you're planning a business or purchasing a new home.
During tough economic times, potential home buyers are often looking for what they can afford, but they don’t consider how location impacts property value.
So much goes into calculating a home’s property value, including the home’s style, the neighborhood, home improvements, and the views. A professional realtor can help you navigate how much a location impacts your potential property value. They are especially helpful in answering essential questions for first-time buyers.
Here are several factors to consider when considering where to buy your next home:
What Is the Neighborhood Like?
Every community is different and unique in its own way. That’s because people of various cultures, religions, and demographics often stick together in the communities they know. While the separate parts of town have charm, is it clean and well-maintained? Is it quiet at night, or is the home right off Escondido Freeway?
Are There Nearby Amenities?
Neighborhood amenities also factor into a home’s property value. Community pools and beach proximity are great to have when you have children. People also enjoy living near parks, trails, and playgrounds to have a reason to get outside. Shopping malls and food centers are good to note. A home far from a grocery store will probably have a lesser property value than a home that's close to town.
Is There A Homeowners’ Association?
Well-maintained neighborhood landscapes and holiday decorations often signal that the community has a homeowners' association. The HOA establishes rules for the neighborhood and enforces them to maintain the community’s property value. The rules usually encompass everything from how tall your grass can get before you need to mow it, to weed prevention and what decorations you can install.
What Are Schools Like?
For families with children, it’s crucial to know what the surrounding schools are like. What elementary, middle, and high schools are around, and what ratings do these schools receive? Homes near high-ranking schools or private institutions are often on the pricier side. Parents want to see their children succeed and will probably choose a home near a school for the quality of education.
Market Strategy
In a constantly changing market, you need to be able to safeguard your assets. That is where selecting the right area comes into play. When you are strategic about location, you could be shielded during a downturn and springboarded in an upturn.
In a down market, popular and preferred areas will typically not go down as much as less desirable neighborhoods. When prices go up, those zones rebound quicker and homes can become even more valuable. Research what a neighborhood’s market value is like during an economic slump and compare those results during good financial times.
Is There Potential For Future Development?
If it seems like there is not much around a potential home, just wait a year or two. New and future developments will probably cause your property value to increase over time as shops, restaurants, and attractions are open in the area.
As your neighborhood develops, updating your home ensures you keep up with the market.
Is There A View?
Coastal views cannot compare to a home that faces a street. Scenic views of the ocean or hills can significantly increase a home’s property value. And it’s not just nature views that bring in the coins. A downtown home or condo can also liven up the house and is great for people-watchers.
What Happens in a Down Market?
Markets fluctuate. That’s a fact. But it is also true that some locations rebound or adjust more quickly and some are less price sensitive. Location becomes considerably more important in a down market. Preferred areas are more resilient to tumultuous market conditions, and they typically experience less decline in value when compared to more undesirable neighborhoods. The opposite also holds. When the market upturns, these sought-after properties rebound much faster.
One last thing you can do during your hunt for the perfect home is research, specifically the historical trends of a location. Numbers don’t lie. The trends will tell you which neighborhoods consistently get sales each year. You can also determine the neighborhoods that are rising in popularity and the ones that are dying down.
Don’t forget that the impact of location on property value is just one piece of the puzzle.
Work with Steven Wener of SDSoldbySteve, brokered by eXp, to get a complete picture of your home’s worth.
ABOUT THE AUTHOR:
Gina Thompson is an experienced multimedia journalist, producer, and content writer born and raised in Texas. In her spare time, she loves catching a live band, dancing, and finding the next big taco spot. As a writer, she is passionate about making a positive impact on her community by elevating the voices and stories that need to be heard.
