Your School District Is A Big Factor in Home Value
It is a normal tendency, and an understandable one, for people who are looking for a home not to consider the quality of the school district as an important factor in shopping for a home. This can be the case for a single person not thinking ahead to having children, a young couple buying a starter home, or just as likely an older person. Even in those cases, the desirability of the school district deserves consideration as a factor in your process.
School Quality Influences Home Prices
The school district where a property is situated is the main driver affecting pricing levels of homes in many areas. Though it has not always been the case, with increased sophistication of buyers in recent years it has become more evident that homes in the better school districts sell for significantly higher prices than similar homes in other areas.
Homes that are situated in prestigious school districts will be sold for 20 to 30% more than similar homes in other areas. If you consider an median cost of a residence in the US in the area of $220,000, the price difference is significant.
In previous years, home buyers were more worried about such things as the home’s location with respect to their work, city centers, shopping centers, and possibly aesthetic attributes such as the appearance of the subdivision. Now, buyers are more attuned to negative factors such as being located in school districts that are less desirable, where the per capita spending is dismal and school performance is low. Homes located in these districts can be hard to sell.
In some areas with the best school districts, buyers can be willing to bid up the prices. This can account for inflated real estate prices; or, in a slow market can let homes decline more slowly. This affects the listed price of any home in the area available for sale after that sale. Savvy buyers acquire school summaries early in the search for properties, because they know it is an important factor in the value of the property a significant factor in the price for which the home can be sold in the future.
Boundary Line Uncertainty
In a volatile real estate market, any reason that could compel a person to purchase a home in a given neighborhood adds to the value of those homes. Both real estate investors and homebuyers alike must remember that the boundaries of school districts are subject to change, which can increase or decrease the value of the property by a significant amount. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim, on short notice. In the real estate market little is certain.
For more information on this article or San Francisco real estate cotact James Aduna 415.901.2797 or jaduna@ubayp.com
This information was made available by your Colorado Longmont real estate specialists at Automated Homefinder.
