6 Location Factors You Probably Didn’t Realize Can Affect Your Home’s Value
Everyone knows that other than the condition of the home itself, nothing is as important to a buyer as location. The adage of “location, location, location” rings true. There are many factors and considerations when looking at the impact location has on property valuations. Here are six location factors that may affect a home’s value.
1. TREES
According to a recent study by the University of Washington, trees can have a significant impact on the value of a property. Here are some of the findings:
- Mature trees in a yard result in a 2 percent price increase
- Mature trees on the street equate to 3 a percent gain
- Trees in the front yard give a 3–5 percent boost
- Mature trees in a high-income neighborhood can result in as much as a 10–15 percent increase
2. CENTRALITY
Being able to walk to nearby locations can help increase a home’s value. WalkScore.com rates neighborhoods in the US based on proximity to parks, schools, and grocery stores. Walkability has become even more valuable in recent years, since millennial’s find it particularly important for homes they buy. In 13 of the 15 areas studied, homes in highly walkable neighborhoods sold on average for $4000 to $34,000 more than homes in neighborhoods of average walkability.
3. PROXIMITY TO SCHOOLS
Parents with school-aged children often make a determination on neighborhood based on the school ratings. In fact, buyers might even forgo certain features or property details just to get their kids into a good school. According to a study by Great Schools, going from an average school district to one with great scores and a high rating can require a homeowner to pay 60% more for a new home.
4. CRIME RATE
Many studies have been conducted to try and determine the impact that a higher crime rate has on the value of properties in a neighborhood. While identifying a direct influence may be a challenge, even for academia, it is a pretty safe bet that crime drives down the value of homes.
5. CLIMATE/EXPOSURE
Living near the ocean significantly raises the value of a home, despite the threat of severe weather. However, residing in a flood zone not only reduces the value of a home, but increases the cost of homeowners insurance as well. Buyers and realtors are savvy to flood zones and the impact they can have on property values. Depending on geographical location, sinkholes, earthquakes, or wildfire tendencies could also negatively affect home prices.
6. PUBLIC TRANSPORTATION
Access to public transit represents significant savings for homeowners who don’t have to drive. It also helps the environment by lowering emissions. Factor in the convenience and it becomes easy to see why property values get a boost from being close to public transit.
Thank you for reading. I hope you found this information useful.
Jeff Pittman, Realtor in Ladera Ranch – Orange County, California