Local Schools Have a Critical Impact on Home Value
It is a natural inclination for individuals who are looking for a home not to worry about the quality of the school district as an important thing to consider in shopping for a home. This can be the case for a single person not thinking ahead to having children, young people, or possibly an older individual or couple. It may be a surprise for you to learn that even when that is the case, being in a good school district deserves evaluation as a significant factor in your process.
Real estate professionals say that the school district in which a home is located is a primary driving force behind pricing levels of homes in certain areas or neighborhoods. Homes in the neighborhoods of better schools commanding higher prices than similar properties located elsewhere has become a much more common phenomenon in the more competitive market of recent years, where it may have been less frequently so previously.
A Difference That Can Be Measured
The difference in home prices caused by the quality of the school district is measurable. Property located in better school districts can be priced at as much as 30 percent more than similar homes elsewhere. When considering the median asking price for a single family home in the area of between $180 and 240K, the difference is significant. In those parts of the country where prices are higher, of course, it can be even more of a difference, but even where median prices are lower there is still a definite difference in home value.
Buyers Can Be Picky
In previous years, home buyers seemed to be only concerned with such things as the property's location near places for entertainment, city centers, centers, and possibly less tangible attributes such as the overall appearance and feel of the subdivision. Now, buyers are more concerned about negative factors such as being located in school districts that are less desirable, where the per capita education spending is dismal and school performance is low. Homes located in these districts may be hard to sell when the homeowner wants to move, and the values of these homes tend to remain lower and cannot increase as quickly.
In some areas with the best school districts, buyers actually bid against each other. This can contribute to inflation of home prices, or in a slow market can cause homes to decline more slowly than the general trend. This affects the listed price of other homes in the area available for sale after the transaction has closed. Savvy buyers acquire school performance reports and related data early in the search. They know that it is In many cases, school ratings are given greater importance than neighborhood demographic data.
In a volatile market, any reason that could induce a person to purchase a home in a particular neighborhood increases the value of the homes there. Investors and home buyers alike have to remember that the bounds of school districts are subject to change, which can change 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. In real estate, not much is certain and almost everything is subject to change, and this does not exclude the school district.
This article was provided courtesy of Automated Homefinder, Colorado's Highlands Ranch real estate professionals.