If you are in the market for a new home, there are many factors that you must consider. One of the most important things that you need to look at is the neighborhood that you are buying a home in. The statement “location, location, location” is a critical aspect of buying a home and one that should never be underestimated.
The neighborhood that you are looking to buy a home in affects many different things. It will affect the overall value of your home as you live there, the schools that your children will go to, the parks that are available, and the ability to walk to local shops. When purchasing a home, the one factor that you cannot change is where you live. You can update the inside and outside of the home to make it your dream home, however, you will not be able to pick up your home and move it to a more desirable location. Therefore, if you are in the market for a new home, you should look at the neighborhood the house is in before looking at anything else.
How Neighborhoods Affect Home Value?
One of the biggest factors that affect your home’s value is the neighborhood. A mansion in a bad part of town will never be worth what it could be in a better neighborhood. On the other hand, a one bedroom townhouse in a wonderful neighborhood may actually be more expensive than a four bedroom home in a worse neighborhood.
While some neighborhoods can become gentrified, this is not usually the case. A bad neighborhood will likely remain a bad neighborhood and a good neighborhood will stay a good neighborhood. Recent statistics have shown that your neighborhood can either increase or decrease your home’s value by about ten percent.
A neighborhood provides different benefits and downsides for homebuyers. Neighborhoods that offer the most amenities and positive safety outcomes will naturally increase the value of homes. Homebuyers should look at safety ratings, commute times, proximity to public transit, and schools before they purchase a home. Local COMPS can help you determine which neighborhood you can afford and whether or not the house you are looking at is worth the value.
Another important factor to consider when purchasing a home in a certain location is the walking score that each house is given. Most online sites will provide each home with a walking score. This score indicates whether or not you will need a car to live in the home or whether or not you can walk to most of the places you want to go. The higher the walking score, the more likely you are to be able to walk to where you want to go.
While most homebuyers will still have a car to get to work, this score gives you a sense of how close local shops and restaurants are to where you live. If you are an eco-friendly person who truly cares about saving the environment you may want to walk to places as much as possible. Look for homes with a high walking score because they will tend to be closer to parks, schools and other popular areas.
If your future home is in a location with a high walking score, you may be able to only have one car for your family. This can save you a lot of money over time because you will be able to reduce your car payments, reduce the amount you spend on gas, and reduce your insurance rates. This is an important factor to consider when trying to determine if you would be able to afford a new home in the area you want.
Schools and Parks
If you have children or plan to have children, your location will determine where your children go to school and where they will play. Public schools are funded by property taxes and therefore, the higher the property taxes, the nicer the schools tend to be. While private schools are always a possibility, the majority of Americans still prefer to send their children to public schools.
The location of your home will be located within a school border. People are always willing to pay more for homes in a good school district. Therefore, if you purchase a home in a good area and a good school district you will likely only increase the value of your home over time.
The location of your home will also determine which parks are closest to your house. While anyone can visit any public park, the convenience of going to the park will change depending on where you live. For instance, if you are only one block from the park, your home may be more desirable and worth more.
When choosing the right home for you and your family, another important factor to consider is the safety of the neighborhood. Look for neighborhood watch signs on the street and around the block to determine if you home is in a neighborhood watch safety program. These signs will act as a sign that your neighbors will look out for you and your family. Neighborhoods that have these signs displayed tend to have lower crime rates. Since safety is often one of the highest priorities for homebuyers it is important to research the safety statistics in your area before buying a home.
Location is one of the main factors to consider when purchasing a home because it is the one thing that you will never be able to change. When looking for a home you should do your research, talk to friends and families for their recommendations, and drive through the neighborhood before you make any offers or sign any contracts. If you have a bad feeling when driving through the neighborhood it may be best to keep looking, even if you love the actual home. If you love the neighborhood, but are not in love with the house, remember that you can always update the house over time.