Location. Location. Location. This real estate phrase is used all the time, but what does it mean and how can affect the value of a home in today’s real estate market?
Location is a very important aspect when it comes to investing in property. The same home in a different place can affect the total value. ‘Location, location, location’ is not just about what is desirable to you as a new homebuyer, but also objective factors that help to ensure your home investment makes sense long-term.
True Concept Title recognizes the importance of location and today’s real estate market. You can change almost every aspect of a house from its shape to its condition but you cannot change its location. The location and value of your home are important not only when you close on a property, but also should you choose to refinance your mortgage loan later.
How Can Location Impact My Property Value?
When it comes to what a good location means, it can clearly represent different things to different people. That said, some definite objective factors remain across the board. Remember, that not all these factors may align with your personal needs and preferences, and that is okay.
When looking for a new home, keep these in mind as they may impact the overall property appraisal now and in the future:
6 Locational Factors To Consider In Today’s Real Estate Market
- Nearby Schools
Is the home zoned for quality public schools? Even if you don’t have children, this is a key factor that should be an important consideration when researching the best home location.
Owning a home in a good school district is one of the biggest factors that drive up the property value. One of the safest ways to invest in real estate is to invest in a great school district.
- The Neighborhood
Although the typical mortgage is for 30 or 15 years, on average, a person lives in their home for just 7 years. Thinking ahead for future resale value, you should consider what future potential buyers might think of the neighborhood as well.
A neighborhood could also encompass a certain geographic location. After all, once the land is developed and there is no more space to build upon, this makes the value of the current homes much higher. For instance, there are only so many homes that can be waterfront, near city amenities, or backing up to a golf course or lake.
Transportation can mean many things, but in the end, the main factor in raising property value is the ease of transportation and the daily commute. No one wants to spend a lot of time commuting to their jobs, schools, or even to shop—time is the most valuable asset in the world and people are always willing to pay more to save time.
Walkability is also important to a lot of potential buyers and current homeowners. Do you feel safe walking around after dark? If the area is more urban, make sure local bus or train stops are nearby and there is an easy walking or biking path to get to them. Living near a major highway is convenient as well.
No matter where in the country you choose to call home, True Concept Title is here to help you close on the perfect property. Call our national title company if you have questions about your upcoming closing or loan refinancing; we’re happy to help you. You don’t even have to worry about transportation. Our title experts will come to you for a convenient mobile closing.
4. Local Amenities
Amenities are important. In general, proximity to amenities improves a home’s value. Where are major stores, restaurants, and hospitals located in relation to the property…ideally these should all be within a few miles unless you are looking at buying a vacation home or a home in a rural area.
Many times, we help clients close on a home in a planned neighborhood that has its own set of amenities (ex. Pool, gym, etc.). While this may not be important for all potential homebuyers, these exclusive community benefits may have a positive impact on property value as well.
5. Crime Rates
Crime and safety should always be on top of the list when it comes to evaluating a home’s location.
To find crime information on a specific location, visit www.CrimeReports.com and input the home’s zip code to search. You can also visit the city’s official government website, the FBI website, and we suggest reading posts on sites like Nextdoor. The latter site will allow a potential buyer to get a feel for how the people who live nearby feel safety-wise, instead of just going off statistics.
6. Lot Location
Making a decision based on the home itself, instead of the location, could lead to another move sooner rather than later or could impact your refinancing amount later.
The actual infrastructure of a home is a depreciating asset. Therefore, an appraisal will look at property factors that include the lot being near a busy road/highway, next to a commercial property, or is on a street with an unusual amount of traffic. These things can be hard on the home’s property value even if all the other location factors mentioned above are in its favor.
Close on A Great Piece of Real Estate
Our title agents want you to feel comfortable with every aspect of your real estate purchase.
When it comes to buying and closing on a new home remember you cannot change a house’s location.
The real estate market is always changing. Where you live and the condition of the property can affect value overtime. While you may not be able to ensure your home will appreciate in the future, you can find a great location that can suit your lifestyle.
Choose True Concept Title for all your real estate services and needs. We support the entire home buying and selling process from start to finish. With offices based on both the East and West Coasts, you can reach our national title experts anytime. Call 813-263-7168 today to speak with a specialist.