The value of a home depends on many factors, but buyers and sellers are often surprised at the location’s role on that value. You likely have heard, “location, location, location,” but do you know what that means? Understanding the impact of location on the value of a home will help you make better pricing decisions as you seek to sell a property.
Factors that Make a Location “Good”
To understand the impact of location on your home’s value, you must first understand those factors that make a location a “good” one. When it comes to location, buyers tend to look for pleasant, safe neighborhoods. They want to see homes in good repair and low crime rates. They also want to see a home near the amenities they value, such as shopping and dining. Quality school districts also impact the location’s value. Sometimes in areas with major natural attractions, like mountains or a beach, being near these natural marvels is also beneficial. Understanding the buyers in your area will help you know what makes a location appealing.
What Can Detract from a Home’s Value
Just like some features can make a location more appealing, some can make it less so. For example, many buyers do not want to live near overpasses, airports, or railroad tracks because of their noises. Properties near these features can have lower values.
Safety is essential to many home buyers. This means homes in high crime areas can have lower values, as can those near hazardous locations like industrial plants that potentially release toxic emissions. Areas near rivers that are prone to flooding can have lower property values as well.
Finally, commercial property located close to a home can lower the appeal of the home’s location. Commercial districts bring a lot of noise and traffic, and this can push some home buyers away.
Good Locations Increase Home Values
When a location is appealing to buyers, it makes the homes in that location more valuable. People will pay more for a property in a safe, quiet neighborhood near shopping and dining than they would for the same floor plan in a crime-ridden community. If you are looking for a home to buy, understanding this impact of location on home values and prices will help you choose a property that meets your needs and has high potential resale value down the road.
Whether you are pricing your home to sell or are shopping for a home to buy, understanding the value and location’s impact will help you make wise choices. You can’t control a property’s location, but you can use that knowledge to choose the proper value for a property or make a smart buying choice. Location is vital to property valuing homes, no matter what area you live in, so make sure you understand this before entering the real estate market.