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The Importance of Location in Real Estate

The Importance of Location in Real Estate

Ask a realtor the most important factors you need to consider when purchasing real estate, and they’ll tell you three things: location, location, and location. If you’ve ever gone house hunting, may have heard of it before, and it holds a lot of truth. In the world of real estate, location plays a vital role. It can drive up prices and affect the way people spend their lives. 

Even though seasoned real estate professionals and new homebuyers prioritize this factor – have you ever wondered why? 

Here’s why location matters in real estate. 

1. Nearby Schools

Is the home that you’re considering buying in a good school district? Does it have any private schools nearby? How are the schools in this district? These are some of the questions to consider when assessing the home’s location and its resale value. This is particularly true for family-oriented individuals or if you have middle-aged children. 

However, even when you don’t have school-aged children, the quality of schools in your vicinity is still an important consideration. Owning a home in a district with good schools is a great way of retaining or improving your home’s value. 

2. Crime Rate

University Management suggests that crime and safety should be one of the top considerations you make when selecting a home. After all, no one would want to live in a neighborhood where crime is rampant. Fortunately, it’s fairly easy to find crime rates for a district on the internet. Apart from various crime data reporting websites, such as National Sex Offender, Family WatchDog, and Neighborhood Scout, homebuyers can also ask their potential neighbors about the conditions of the neighborhood. 

This brings us to another important factor.

3. The Neighbors

For better or for worse, you won’t be able to change your neighbors once you’ve moved into an new place (unless they decide to leave on their own). If you have neighbors that tend to be loud, have dangerous dogs, or if they’re into shady stuff, it could negatively impact your home resale’s value. 

Before you put down an offer on a house, you should try to spend as much time as possible in the neighborhood. Walk down the street and try to socialize with the neighbors if possible. You should be able to get an idea of who lives there simply by spending time with them. Apart from the resale value, it’s also a good idea to look at the neighbors just for your satisfaction. 

Do you prefer living in a neighborhood with young people or retirees? Are you looking for a community that is well-knit together or people who mind their own business? These are personal preferences that can change from person to person. 

4. Ability to Appreciate

Almost every real estate investor will tell you that location is vital when you’re considering the property’s appreciation potential. That’s because frequently, location directly dictates the prices of the real estate market. If your home is located in a desirable neighborhood, then there’s a high chance that your home’s valuation will stand tough against the tests of time. 

You may even see its value appreciate in the coming years. As the demand for your location increases, its price will gradually increase, too. 

5. Transportation

Another vital reason location matters are because it indirectly decides how people move around in the area. Walking to the grocery store, restaurant, cinema, or shopping mall may be easy in some locations. In others, there may be safe and accessible public transportation options that let people travel around the local area. 

Wrapping Up

Location is perhaps the most important to consider when purchasing real estate. Go through the listings in your area and then compare the prices with a different neighborhood – the stark difference you see in prices is because of the location. 

If you don’t want to get through this alone you can always look for help from an experienced management company.

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