A real estate agent’s common rhetoric is always ‘location, location, and location’ when asked as to what a property should most importantly have. As far as India is concerned, the real estate market is a diverse one when compared to many other countries. To choose a location, any buyer is input with an overwhelming amount of information today, mainly because it is becoming more common to rely on technology for the purpose. In such cases, the capacity of the buyer to choose the best location lies in reading between the lines and understanding the information in depth.
In a real estate boom, homebuyers will clamor for almost any house that hits the market. This is great while it lasts, but when the party’s over, only homebuyers who choose the best locales will be holding the most valuable property that also depreciates at a much slower rate. This difference in value is largely a result of a home’s location.
“Location, location, location” is a common mantra in real estate. And it’s good advice—except for one thing: Most people have no idea what it really means. Location is key to valuable real estate. Homes in cities that have little room for expansion tend to be more valuable than those in cities that have plenty of room.
Importance of Location In Real Estate:
These five locations factors affect the resale value of a home.
1. Nearby schools
Is the home zoned for quality public schools? Is it located near well-regarded private schools? How is the overall local school district? These are questions to consider when assessing a home’s location and potential resale value. This is especially true if the city you live in is family-oriented, and if you have school-age children. Remember, though, that even if you do not have school-age children, the quality of the schools remains an important consideration. Owning a home in a good school district is one of the best ways retain and grow your home’s value. If you live in a snow-bird, retirement-focused community in Florida (just as an example), then the quality of the schools may not be as important. Be sure to do your own research on the community’s buyer pool and local schools before purchasing a home.
2. Crime rates
Crime and safety should be top of mind when evaluating a home’s location. After all, no one wants to live in a neighborhood where crime and danger are rampant. Thankfully, it’s fairly easy to find local crime reports and crime rates on the internet. In addition to various crime report websites, such as Family WatchDog, Neighborhood Scout and the National Sex Offender Public Website, home buyers can also check their local Nextdoor.com public forum to find out about local reports on burglaries, thefts and more unfortunate crimes that occur in their area.
3. Amenities and transportation options
One of the reasons why location is so important in real estate is that buyers often want and need close access to amenities and transportation options. This means relatively close proximity to restaurants, grocery stores, dry cleaners, shopping and entertainment. It could also mean a home situated near important roads and public transportation options, such as bus stops, subway stations and public bikeshare locations. When looking at a home, be sure to assess how close the home is to these important amenities. Unless you’re looking to buy a vacation home on an almost deserted island, close proximity to amenities will typically improve a home’s value.
4. The neighbors
For better or for worse, you can’t change your neighbors (unless they decide to leave on their own accord). If you have less-than-desirable neighbors, such as a fraternity house or neighbors with loud, dangerous dogs, this could negatively affect the resale value of your home. Before buying any home, you should spend ample time in the neighborhood. Take a walk down the street and try to meet the neighbors if you can. You should be able to get a good sense of who lives there simply by spending time in the area. Resale value aside, it’s also a good idea to look at the neighbors for your own sake. Do you prefer to live in a neighborhood with young families or retirees? Are you looking for a tight-knit community feel or a less neighborly community? These are personal preferences that are important to consider when buying a home.
5. Future appreciation potential
As any real estate investor will tell you, location is key when it comes to a property’s value and future appreciation potential. The reason? Oftentimes, location dictates the demand in a real estate market. If the home is located in a desirable neighborhood in a location where people are moving, then you can expect the home’s value to stand the test of time – and even appreciate – throughout the years. As the demand for a location increases (and as the location improves), the appreciation will also continue to increase.