Just because it’s not on your property doesn’t mean it can’t impact the value of your property.
It’s a behind-the-scenes thought that most people don’t consider. After all, you’re buying a home
for the home. You’ve had an appraiser assure the property is structurally sound. You fell in love
with the closet space and kitchen island. The family dog has plenty of room to run in the
What else is there to consider? Start by taking a look at what’s nearby.
High value is placed on a solid education; that’s precisely why a nearby school can raise or
depress real estate prices. A reputable district may prompt many to spend more all in an effort
to give their children more opportunities. Statistics from the National Association of Realtors
support this point by stating that 20% of homebuyers listed distance to quality schools as a
major factor in deciding on a home purchase.
Other Homes in the Community
A significant part of valuing real estate is from market comparables or comps. Most homes in an
area are similar in size and quality. Meaning that in most cases, the average home price for an
area closely resembles that of the home you may be looking at. Take a look at the
The convenience of living close to the area you work in can be unrivaled. If an office park
nearby employs nearly a thousand people, you can expect the real estate in the vicinity to be
high depending on what the company does for operations. There are, however, two sides to the
coin in that specific industries could be deemed negative for home value. City dumps, power
plants, and even hospitals can all diminish the value of your home.
Think local pools, parks, hiking trails, or other easy-to-access recreational activities. It can also
be grouped in that good restaurants or chains bring value to a real estate nearby. Have you
ever heard of the “Starbucks Effect”?
Obviously no one wants themselves or their family exposed to potential danger. High or low
crime rates have been shown to impact not only an area’s perception but real estate valuations
as well. Think of crime on one end of a seesaw and real estate prices on the other: crime rate
goes down so prices appreciate (go up). We see a rise in crime so the value of home prices
experience a decline (go down).
Though the list goes on, making sure evaluating what’s nearby your potential real estate
purchase should be a priority.
Want to know more about the process or how to apply? See the links below!