What makes a great location?
The answer to this is usually both subjective and objective. Home buyers will be emotionally invested in this aspect, especially if it’s their first home and/or their dream home.
However, a house is a financial investment, regardless of whether or not you intend to sell it down the line for a decent profit; and location helps dictate how much you will be paying now. This is why you have to approach the question of location with a healthy combination of emotionality and sharp-eyed objectivity.
Here are 3 objective location factors to consider when looking at properties:
1. Extent of development around the property
The more highly developed an area in a town or city is, the less land there is left available—and the steeper the price of properties.
On the other hand, in places that are less developed, properties have lower value, and that affordability may influence your decision. However, you need to consider that when you eventually want to sell, if development in this area hasn’t caught up by then, it will likely impact the selling price.
Development isn’t just about the amenities that are currently available. Projected growth substantiated by plans for upgrading public transportation and public infrastructure as well as for schools, hospitals, etc., can drive up real estate value. Even more so if commercial development is also happening at a consistent or rapid pace.
2. The neighborhood
The quality of a neighborhood may dictate the size of the lots where the houses are built. The more people are looking to move into it, the faster space becomes scarce—and the higher the prices go.
Barring other elements that may appeal to you on an emotional level, the value of an investment-worthy neighborhood is determined by the following:
Asking about safety is a responsible thing to do. In any case, clean and well-maintained neighborhoods where residents confidently live their daily lives and openly interact with one another normally have low crime rates.
Neighborhoods with more than one entry/exit points that are near major routes and public transportation terminals or stops are ideal for buyers whose jobs require them to commute daily to and from work.
Neighborhoods that are more out of the way may be attractive to home buyers with a less conventional means of living or lifestyle.
Clean streets and well-maintained public spaces and commercial structures; healthy trees and foliage; great landscaping; and proximity to green or community spaces can make buyers love a neighborhood at first sight.
Quick turnover, as indicated by how long properties stay on the market, also indicate a neighborhood’s appeal.
Proximity to shops, grocery stores, and restaurants as well as places like theaters and stadiums and the city’s business district can help many home buyers decide to make an offer.
Schools and hospitals will also have a significant influence on your choice, even if you don’t have kids. Chances are you will have one or two in the future or you will be selling the house later to buyers who have kids and are particular about how close the property is to schools, so it certainly doesn’t hurt if you end up buying a house that’s close enough to good schools.
3. Location of the lot itself
A house built on a lot that allows you to have a great view of trees and mountains or is near a body of water will cost you more as a buyer, and fetch you a good profit when you sell.
Meanwhile, you will likely pay less for a house along a busy road or near a highway, or one that is close to commercial property, churches, etc. But then you will also struggle to sell it for a good price later.
Get expert help from real estate professionals who are truly invested in matching buyers with the just the right house in terms of price, location, and the more unique and personal factors that move people who are looking for a home.
Contact Team Clancy today!