In many real estate advertisements you see the claim “close to good schools”, but does the proximity to education centers really affect a property's value?
The adage “location, location, location” is well known and refers to how a property's value benefits or suffers from the surrounding neighborhood. Families looking to buy often prioritize the proximity to schools and the ease of access to transport systems. Naturally, sellers want to put a premium on such benefits.
Research from the National Bureau of Economic Research has recently linked property value to schools in a study: Using Market Valuation to Assess Public School Spending. It claims that for every dollar spent on a local public school, the value of a home goes up $20. If you assume that funding is the determining factor of a good school, then property prices benefit from having well-financed education facilities nearby.
A 2016 study by property site realtor.com claimed property values were on average higher in top-performing school districts than the median real estate price. It used Duke University as an example, noting homes achieved an average of 52c per square foot more than homes outside the area.
While there is no dispute about the impact of location on value, quantifying that benefit is not a perfect science. Each buyer will see different benefits to the location of a home.
These are some of the essential local amenities that today's buyers want nearby. When you decide to sell, ensure you maximize every location benefit you offer.
1. Essentials
Folks want to be near some of the most fundamental public services such as schools, universities, hospitals, transport systems and shopping centers.
2. Lifestyle
Sellers can place a premium on their property for amenities that make life fun, such as parks, cafes, restaurants, cinemas and theaters.
3. Safety
Low crime rates, well-maintained neighborhoods and a strong community are seen as highly desirable by buyers, especially families and senior buyers.
4. Nature
If you have great views, either of surf crashing onto the beach or rolling hills, you'll be able to demand a premium.
5. Jobs
Being close to centers of employment, or a CBD, is a significant tick-in-the-box for buyers who dread wasting hours every day on a long commute. Areas with strong employment growth play well, too.
6. History
Many folks love living in areas of cultural significance because these areas are so unique. Where you can, emphasize this benefit of “unique living”.
7. Future
Savvy sellers will also investigate the future plans for their neighborhood and emphasize these benefits. Additional infrastructure, such as a new hospital or train station, will bolster local prices.
