Schools and the value of real estate
It comes as no surprise that numerous factors affect our decisions when buying a home. Aside from aesthetic value, we look at the age, its proximity to amenities, the overall layout of the home, as well as home features. Let’s not forget, however, the importance of the presence of school districts in the area.
But how do schools affect real estate prices, and how do they influence our home-buying decisions? Let’s find out.
A top priority
Outstanding educational opportunities are a top priority for homebuyers who value education, even more so for families with school-aged children. It’s so important, some homebuyers are willing to pay premium prices for a good home located in a neighborhood served by a topnotch school district. This is evidenced by a 2013 survey conducted by Realtor.com, which showed 91 percent of homebuyers regarded school boundaries as an important factor in their home search.
Demand: one of the forces that drive real estate prices
Since there is demand for homes located in close proximity to reputable schools, this affects the prices of the homes in an area. This ties in with location. It’s a given real estate in downtown districts cost more due to the number of services available in the area. It’s more or less the same with schools.
Homes located in areas served by reputable school districts are more likely to cost more than their counterparts located in less desirable neighborhoods—in this case, homes served by, at best, average schools.
Meanwhile, some experts are saying that home prices are actually responsible for making schools better. According to a 2016 article by Realtor.com, affluent homeowners usually live in sought-after school districts. There is a relation, as the more affluent communities produce better test scores.
Should you buy a home based on schools alone?
Of course not. Other factors such as your needs and lifestyle come into play. If you are, however, willing to pay premium for a home located in a top-performing school district, by all means, go ahead. This applies even if you’re not sending any children from your household to school. Think ahead, as this can affect the value of your home in case you decide to sell it in the future.
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