It can be easy to dismiss the idea that your property purchase is an investment. After all, there is an emotional attachment you make after you’ve made a house a home. The homebuying experts at NAEBA recognize a home purchase is likely the biggest purchase that you are going to make in your lifetime.
Though there are recent signs the market is slowing, there are likely still elements that have allowed your home to increase in value.
Location is the single biggest determinate in housing prices. So, what makes one location better than another one?
School District
Many prospective homeowners look for a top school district, so living in a municipality that is focused on education is a positive sign.
You can turn to various rankings, but keep in mind that school administrators are getting savvy about their public relations. Do your own research by reading public posts and talking to parents in the district. If you can, check the school district’s meeting minutes to understand related issues and priorities.
A Smaller Home in a Nice Neighborhood
Taking a purely economic perspective, it is better to own a smaller home in a more upscale neighborhood than a larger home located in a more modest neighborhood.
Larger homes raise the value of smaller ones, and improvements made to larger homes in your neighborhood can have an impact on your property’s value. Buying a larger home in a more modest area means you are lifting the value of surrounding homes.
A Quiet Street
Homes on a quiet street are more desirable than those on a busy one. People will often pay more for a quiet, serene life than one in the middle of a lot of noise and congestion.
Proximity to Other Things
People want to live close to things they desire. This could include nice shops, entertainment, recreation, public transportation, interstates, and much more.
Reasonable access to quality health care is also desirable, and for some, a requirement.
You should watch for changes to your neighborhood, town, and city. Monitor social media and other sites to see if new restaurants are going in, parks are being developed, or if there are other changes that could affect your property’s value.
Factors that Can Decrease Your Property’s Value
There are certain factors that will hold down the value of a home, and buyers can pay less for a comparable home if these are present.
Realtor.com has put together a host of such items, with others including high crime neighborhoods, crowded and noisy areas, and commercial/industrial towns and cities.
A downtrodden neighborhood may prove a mixed bag, but if there are signs it is on the upswing, you could see a sharp increase in home values. Signs a property’s value is on the rise could include recent upscale development.
When considering whether to purchase a home with a low property value, you should balance the risks and weigh whether you want to live through the process of the neighborhood changing. A NAEBA Exclusive Buyer Agent can help you determine the best options for you and your family.