Location, Location, Location: Top of Mind when Buying
Published | Written by Erin Epperson
This is the single most important factor when buying a home. Why? It's the one thing you can't change, upgrade or fix. Sure, locations become more or less desirable over time, but while you fix up your fixer upper the land it sits on will remain the same. So, what makes for a great location you ask? Below are our most valuable factors to consider when you're house hunting to keep your resale value at top dollar.
1. FOCUS ON A NEIGHBORHOOD'S FUTURE
Your 'safe' and 'established' neighborhoods will change. When investing in your forever home, or even a home you plan to flip and sell, look right outside of these locations. You want to buy in a neighborhood that you see has a potential future. These up and coming spots will have a lower price tag. When that 'good' neighborhood fills up and spills over to expand, suddenly you paid the price for what was deemed a bad neighborhood and you'll now reap the benefits of resale maximizing your profits. Your floor is higher when you do this, meaning the area likely won't depreciate more and this lowers your investment risk.
2. THINK ABOUT YOUR DEMOGRAPHIC
Millennials represent over half of the buying pool. Paying close attention to their buying habits and desires could have long-term benefits for yours. Buying in an area that is deemed 'desirable' by this demographic will increase demand. Increased demand raises real estate prices. Millennial buyers tend to look for homes in the under $300,000 range with great schools and close proximity to amenities.
3. RESEARCH SCHOOLS NEARBY
When you think about the future of the neighborhood you are investing in, schools may play the most important role. Are there plans to develop? Are the schools in that district well-rated? The easiest way to determine if you're investing in the right area, is to invest in the school district first. Do your research. Your target demographic of prospective buyers are buying a home with the purpose of raising a family. No one wants to enroll their children in a system that isn't promising for the best education. Do keep in mind as communities grow, districts can expand or new developments will be made. Much like a neighborhood's status quo is not set in stone, neither are the schools nearby. Keep with the common theme and look ahead.
4. KEEP AN EYE ON AMENITIES
Buyers want close proximity to restaurants, grocery stores, shopping and entertainment. Think a 5-10 minute drive. This makes your route and commute an important factor. A home can be situated outside of town, but still fit this buyers' niche if there is an expressway they can quickly hop on. Be weary and tactical about out of town spots that a buyer can't avoid certain roadways. A 45 mph speed limit will result in a much different total route time than a 65 mph speed limit. Aside from the time most people spend at their home, the second most frequented location is the workplace. If a buyer can't get there in a timely fashion, this can often be a deal breaker on whether or not your home is a good fit.
Which factor is the most important to you when it comes to finding a home in a great location? We want to hear from you! Drop your responses in the comment section below.
Keep reading other bits of knowledge from our team.
Have a question about this article or want to learn more?