How Where You Live Affects What Your Home is Worth Posted Feb 26, 2022
Every homeowner’s needs differ from one household to the next. Your home’s location is a huge factor in the price of your home. How desirable is your neighborhood? As stated prior, everyone needs something different from a location. Some potential homebuyers are looking for a quiet, large, colonial-style home in the middle of the woods. Others may need something close to shops or close to where they work. Your location fills someone’s need and that can be highlighted to your benefit.
Schools, Parks, and Crime
Personally, if I move anywhere, I want the schools to be good and the crime to be below. I’m sure anyone who has a family to look out for would want something similar. Your home’s value increases if your home is located in a friendly and safe neighborhood, where crime is low and schools are even decent.
Other factors of location that determine your home’s value are the distance from highways and popular routes to travel. If you live in a big city, you may work on the outskirts of the city or possibly much further away. Your proximity to freeways can be something a buyer would take into consideration.
On the opposite spectrum, a buyer may turn away a home that is TOO close to a specific location. Many people do not want large groups around their homes or live so close to neighbors. That may deter someone from picking your home. However, no matter who turns away for whatever reason, it’s important to remember that this home is not for them, but it will be for someone else.
Cost of Living
The location of your home and the price you can sell it for is all going to be based upon your local market. If you haven’t checked in a while, you may be asking yourself what is my home worth? How has my home’s worth changed since I purchased it? How has your local community changed?
All around the United States, prices on goods are rising. When the cost of daily living goes up, then so does your property. Ultimately, prices rise in every sector when there is inflation. What goes up, must come down. Eventually, things will balance out. But the good news is, this happens all of the time. Prices are changing every day so you’ll want to make sure your realtor is checking comps for you.
Comps are short for comparables and these are the comparable homes that were sold in your area that are most similar to yours. When markets can sometimes be volatile, you can usually follow what others have done and remain steady. With the market changing from a buyer’s market, it may be going for more of a seller’s market soon.
Predict the Predictable
If you are concerned enough about making sure you’re getting the most equity out of your home, then you should be paying attention to your neighborhood as a whole. Sometimes certain densely populated areas can create a hub for crime.
At times a city can have a large draw and the town can benefit. Usually, local businesses will soon start seeing more profits. This is all positive for the community and its inhabitants. However, in a world that needs balance, generally bad comes with the good.
At times a city can have an issue with its disadvantaged citizens. If tensions are high enough with law enforcement and those living dangerous lifestyles, eventually it can escalate to where there is more crime and less order.
You can view all of this data on listings for most real estate websites. They will give you information on the schools, the crime rates, and public transit. You’re always going to find some communities that excel and some that are less than successful. Communities are always looking to improve on image and peace within their towns, so check how your town stacks up.
