Introduction
Sometimes, location and property value are everything when buying a home.
You want to live somewhere that has good schools and nearby entertainment options and isn’t too close to unsafe neighborhoods.
The good news is you can assess your home’s value by researching its location.
A good home location is essential to consider when you’re buying a home. It will affect everything from home value to your quality of life.
I recently bought my first home after living in an apartment for years. The process was surprisingly simple (though still stressful), but I had trouble determining whether my new neighborhood was a good place for me to live long-term.
At first glance, everything seemed great! But how can I be sure?!
That’s why before making any big decisions about buying a home or selling your current one, you should always ask yourself: what makes a good location for me?
In this article, we’ll discuss the factors that determine property value so that you’ll know how to analyze any property in the US!
Know what makes a good location for you before you buy a home.
The best way to determine the location value of your home is to know what you want in a location before you buy. Here are some things to consider:
Know what you’re looking for.
- Are you looking for an urban or suburban neighborhood?
- Do you want a quiet street with few cars passing by or something more lively?
- Do you want to be near ski resorts, beaches, bus stops, and subway stations?
- What is your max commute time?
Know what’s important to you.
Do they have parks nearby that your kids would enjoy playing at?
Is there access to good schools and libraries?
Is it close enough that when someone comes over, they won’t have too far of a drive back home?
Location is one of the most important aspects of home buying
Location matters. Whether you’re a real estate investor or a first-time home buyer. The location where you live will shape every aspect of your life, from how much money you’ll make to how much time you’ll spend in bed. So it’s essential to consider this when looking at homes for Sale and deciding whether or not they’re suitable investments.
People are willing to pay more for a home in a great location than they would for an identical house in a less desirable area. Therefore, expect real estate prices to be more expensive in desirable locations. How you determine if your house is in a good location depends on what’s important to you and your overall financial goals. We’ll show you how to analyze the following factors, and more:
Accessibility – Is the house easy to get to? Does it have excellent access to public transportation, schools, doctors’ offices, and shopping centers?
Proximity – How close is your house located close to anything else that has value (e.g., jobs)? Do other houses sell nearby within a similar price range as yours?
Safety – What kind of neighborhood is it? Crime rates are usually highest where fewer Police officers are patrolling, or people think they can commit crimes with impunity due to a lack of witnesses or lighting at night.
1. Assess the neighborhood
This is an obvious one, but it’s a good starting point. Ensure that the neighborhood you’re considering buying in is safe and friendly enough for you—and your family members visiting on holidays!
This is a bit more complicated when purchasing a home sight unseen. If there are areas of town that have been hit by crime or even seem a bit less maintained than others, then maybe this isn’t the best place for you.
The last thing you want is to end up in a less-than-desirable neighborhood.
However, don’t be afraid to go beyond what might be considered “safe neighborhoods”—while it might not be everyone’s cup of tea, some cities have thriving artistic communities in parts of town where most people would never think about living (I’m looking at YOU, San Francisco).
Ask your real estate agent for their honest feedback on the neighborhood before moving forward if you’re unfamiliar with the area.
2. Check out the school district
Another critical factor to consider is whether it’s a good school district. If you have children or plan on having them, this will be a big deal. You’ll want to know if the local school district has high ratings in terms of academics and extracurricular activities.
And if your kids are still several years away from going to school, you may want to consider moving into an area with good local schools now so that when they do start elementary school, they’re already established there and don’t have to make any major adjustments.
The average cost of enrolling a child in public school is $12,350 per year—and that’s just for tuition! It doesn’t include books or supplies or transportation costs either!
3. Check crime reports and trends.
This is the first thing you should do when looking at homes in a new neighborhood. A local city or county government office can provide the information you need to make an informed decision about the safety of your potential home’s location.
If you’re unsure where to start, search for “crime report” plus the name of your city or county; this will pull up a list of results with links to useful websites that offer information on how safe it is where you plan on moving.
4. Evaluate Your Commute
If you’re like most people, one of your primary considerations when buying a home is the commute.
So how do you know if it’s worth it? Here are three questions to ask yourself:
How long is my daily commute likely to be?
Is there an easy way for you to get into town? Do you have access to public transportation or bike paths near your house that make it easy for you to go about your day without needing a car or truck daily? If so, does this type of public transportation work well in the area?
How much time do I spend commuting each day—and is it worth being away from family and friends for that amount of time each day?
5. Use Google Maps
When you’re trying to determine if a home is in a good location, Google Maps is your friend. The first thing to do is use the Street View feature on Google Maps to see what the neighborhood looks like from the street level. You can also use Satellite View (available in most cities) to see how it looks from above. This will give you an idea of what the place looks like – if it looks like a desirable location or not – and whether there are any amenities nearby.
6. Go for a drive!
The best way to determine the value of a home’s location is to go for a drive. This is less obvious than it may sound, so let me explain.
The first thing you’ll want to look at is what’s around your property: schools, parks, businesses, and other amenities all add to your overall property value—even if they’re not directly related to your own house. If there are no good schools nearby or there aren’t any parks within walking distance of where you live, for example, those things will affect how much money someone might be willing to pay for your property in the future.
See if something sticks out.
If there’s a beautiful tree, or maybe a well-made fence that catches your eye, take note of it. You never know what might make your house sell for more money later on!
If nothing stands out in the area surrounding your home, look at others.
7. Look at the quality of the neighborhood.
This one is pretty self-explanatory. If you’re considering a home in an area that looks rundown or has a lot of crime, it might not be a good investment.
Is it mostly older homes that need updating? Are there new developments going up? How are people taking care of their properties? Do they have Nice landscaping and well-maintained yards?
Also, keep an eye out for things like trash or graffiti—these can be indicators of broader problems in the community, such as vandalism and crime.
Seeing these types of things could mean there aren’t enough police patrolling the area (which means less safety for you).
Orange-10)" style="background-color: var(--orange-10)">These details can help signal whether or not an area has good neighbors who take pride in their surroundings (which may indicate less crime).
8. Check out traffic patterns and road conditions near where you live
Choosing an area with less traffic will help reduce noise pollution and keep your stress level in check.
Is it smooth sailing most days with little congestion, even during rush hour when everyone else seems stressed out due to heavy traffic jams? Or do cars regularly come barreling down narrow streets without regard for pedestrians or bicyclists trying to cross over them safely? These factors matter because they’ll affect how convenient it is for anyone living on those streets.
A commute that takes 20 minutes may sound great, but if it’s at rush hour and you have to share one lane with a bunch of cars coming into town, then your commute might not be so pleasant. Local traffic patterns can also affect how much money is spent on gas or electricity.
9. Is there an opportunity for forced appreciation?
It’s essential to remember that you may move or sell at some point. If you’re planning on moving or selling soon (or maybe even both), then it becomes imperative that you choose a house with a good location and potential resale value. This could make all the difference in terms of your profit margin and the speed at which the home sells.
10. Check out local government records
You can also look up real estate assessments for any given address using county websites or tax offices (the latter tend not to be accessible via web browsers). This may be especially helpful if there aren’t any other properties close by. Finding out how much similar homes sold for within the last few years could give you insight into how yours might go for now or tomorrow!
Local reports are less common but can be extremely useful when house hunting and determining home values.
11. Proximity to amenities and attractions.
Parks
Parks are a great way to get in some exercise and a good indicator of the quality of life in your neighborhood. If there are well-maintained parks nearby, you can bet that the area is safe and has plenty of activities for kids and adults alike. And if you want your property value to increase over time, it must be located near these types of amenities.
Universities
Being close to a prestigious boarding school or university is an excellent sign that your home might be in a desirable location. One of the reasons why real estate is so expensive in Boston and Massachusetts, in general, is because it has some of the best schools and universities in the world.
On the other hand, you might think you’re getting a great deal on a home, but if it’s located in an area where crime is high, or there are no nearby schools, the value of your home could be diminished. Before buying, look into the local public schools and crime statistics. If they are low compared to other areas in the city and state where you want to live, your home will likely have greater value.
Shopping malls
Proximity to shopping and entertainment is another important factor in determining the value of a home. A home that is close to restaurants, grocery stores, and retail stores will be more valuable than one that’s not.
Is there a store within walking distance? If so, what kind of store?
If it’s an upscale market like Whole Foods or Trader Joe’s then your home may be worth more than if it were located near a low-end discount supermarket like Walmart.
Are there any restaurants nearby? How far are they from your house? You want to live in an area where there are plenty of restaurants for you and your family to go out to—but not so many that you won’t even leave the house because you can get everything delivered or have it delivered straight to your door!
Is there a Home Depot nearby?
If there’s a Home Depot nearby, that’s a good sign. It means plenty of people in the area need to renovate their homes. A lot of the time, they don’t have the skills or knowledge to do it themselves, so they’ll hire contractors who can get their jobs done quickly and efficiently.
If you’re in a good location with plenty of contractors like this around, that means your home will be worth more than if you were in an area without any contractors at all.
Can you get a pizza delivered in 30 minutes or less?
Can you get a pizza delivered in 30 minutes or less (or whatever your ideal delivery time is)?
Is there a nearby gas station or other convenient stores?
Is there a coffee shop or Starbucks nearby, or at least a coffee maker and filters?
If you answered “no” to any of these questions, this home might not be in the best location for your needs.
12. Research the local economy
The area’s economy is a significant factor in whether or not your home will be worth what you bought it for. If many jobs are available, people will have more money to buy homes, and they are likely to pay higher prices.
Many industries hire people with different skill sets depending on where they live, so if you’re looking at an area with a lot of high-paying jobs that require specialized skills like engineering or medicine, then chances are it’s going to be an excellent place to live with desirable homes that sell quickly and command higher prices.
Here’s how to get an idea of how healthy the local economy is in general and whether or not there might be future job growth coming soon. Search “local economy” into Google along with whatever city name you’re moving to. You should find some articles describing trends over time and forecasts based on current economic conditions in each part of the region – including housing prices!
You can also look at the value of similar homes in the neighborhood.
For example, suppose you are selling your house in a neighborhood with many newer and nicer houses. In that case, a buyer will expect to pay more for your property than if you were selling a home located next to other older and less desirable properties.
If you are buying or refinancing a house, an appraisal will help determine your home’s market value. This is important when you want to know how much will be paid out to you and whether or not it’s worth what was initially paid for it.
13. How friendly do the neighbors seem?
If you’re a friendly person and have made friends with neighbors, it can be an indication that your community is tight-knit. That’s good for everyone involved.
But if you don’t know who lives next door or across the street from you and no one else seems to either, then it’s likely that this area isn’t very well-known or developed.
In this situation, many homes could potentially suffer from low property value because there aren’t as many people around to generate interest in the area and support its growth.
14. The closer to the equator, the less dangerous extreme weather will be.
Franklin-peña-gutierrez-14000727-1.jpg" alt="extreme climates" class="wp-image-472"/>The closer to the equator, the less dangerous extreme weather will be.
Check if the home is located in a flood zone
You can also ask your agent to be sure that the property isn’t located in a flood plain. A flood plain designation means that a home or commercial building is at risk of being flooded by rising water during heavy rainstorms or snows. You’ll need flood insurance if you live in a designated flood area.
You might be surprised to hear that homes in tropical locations are less vulnerable than those near bodies of water. The reason? Sea-level flooding, which can happen due to hurricanes and other natural disasters, is far more destructive than most other types of flooding. This type of flooding accounts for about 80% of all flood deaths each year!
Also, keep in mind that some areas are more prone to tornadoes than others; if you live anywhere near Tornado Alley (a region spanning from Texas up through Nebraska), it’s essential to ensure your home is equipped with storm shelters or reinforced underground bunkers so that you can survive any sudden disaster like this one.
If you don’t know what kind of disasters are possible in a given area, living there may not be worth the risk.
For example, California has been hit by earthquakes, wildfires, and mudslides in recent years. These events can cause significant damage to homes and businesses alike. If an area is prone to natural disasters like this, it could make sense for you to look for property elsewhere.
It’s also important to know whether there are nearby gas lines, power lines, and other infrastructure. These utilities run under the ground near some homes and can affect property value if they aren’t properly marked and maintained.
15. The more wind energy available, the more power you can generate during a natural disaster.
A good location offers a cheap and reliable grid-tie home battery backup solution.
For example, increasing population density can lead to higher land values because consumers are willing to pay more when they know they will not have to travel long distances for commercial or recreational activities.
16. Evaluate the noise factor.
If you want to be close to the action, look for a home near a busy street or in the center of town.
However, if you prefer peace and quiet, you might want to find a place in a more rural area. If your neighborhood is noisy, consider whether it’s worth it—or whether moving somewhere quieter would still be too far away from what you need.
17. Is there construction and growth?
Construction in a neighborhood may be a good sign that the neighborhood is growing, but it can also mean that the neighborhood will soon change. In many cases, construction projects are used to fix up and improve neighborhoods, but they can also signal gentrification.
If you’re looking for a new place to live and you see signs of construction in your desired neighborhood, don’t let that deter you—it could be a sign that there’s something wonderful going on there.
However, if you are concerned about gentrification or other negative changes happening in your neighborhood due to development, do research on what types of developments are being built and talk to your neighbors about how they feel about these changes.
You can use this method to determine the value of an entire neighborhood. For example, if there is a lot of new construction in a residential area, you can assume that there must be demand for housing in that neighborhood. This means people are willing to pay more money to live there because it’s becoming desirable, so it’s likely worth more than other areas located nearby.
Research population growth and future growth trends
Look at statistics on population growth and income levels in your city or town. You can quickly find population growth trends in your area by Googling it or with the help of Kurby. Ideally, you want to purchase in an area that is growing. If you’re a real estate investor, you probably want the population growth to be 2X the national average. How many people live there? Where are they moving from? Are there jobs available for them?
If you’re trying to decide whether or not your home has increased in value over time, consider how long it’s been on the market and how long ago your neighbors sold their homes. If your home has been on the market for many months, but neighboring houses were sold within a few weeks or months of being listed. It could be possible that yours has depreciated in value since then—especially if those houses are similar in size and age as yours.
18. Contact the city’s planning department.
Another way to determine the value of a home is by contacting the city’s planning department. The city will have information about what types of homes are sold in your neighborhood and their average sales price.
To get this information, contact the planning department and ask them what other properties like yours have sold for recently.
19. Walk around the neighborhood to see what’s going on.
The best way to determine the value of a neighborhood is by seeing what’s going on. Go around and look at the homes, their proximity to other properties, and how well-maintained they look. Do they have lovely landscaping? Are there kids playing outside? Is it quiet or loud? You might find that one block has a lot of activity while another block has empty lots. This can give you an idea of what sort of flow your neighbors’ houses have and whether or not you’ll be able to sell for more later on if needed.
20. Talk to people already living near the property.
Talking to people already living in the neighborhood is a great way to get an idea of whether or not you’re interested in moving into that area.
If you’re only looking at houses, it can be hard to get a sense of the neighborhood as a whole. Talking to neighbors will give you insight into what kind of community it is and how safe it feels.
If your new home is down the street from an apartment building constantly having noisy neighbors, you might want to reconsider moving there—no matter how much cheaper your mortgage payment would be!
21. Check demographic data.
What is the average age of the homeowners in the neighborhood, and does that fit the lifestyle you want to live?
If you’re purchasing a home in Florida, for instance, it’s essential to know if you’re purchasing in an area that consists primarily of senior citizens. This probably isn’t where you want to buy your first home.
22. Look at unemployment rates in the area.
Suppose more people are looking for work than there are jobs available.
In that case, that could influence property prices negatively as fewer people have money to spend on buying new houses (and/or upgrading existing ones).
Additionally, consider how long it takes for an area to recover after an economic downturn: does it bounce back quickly with no lingering effects like abandoned buildings or deserted shops? Or does it take years before things start improving again?
Takeaway:
Looking at the homes around your potential property is a great way to get a feel for what homes in the area are worth.
Whether you’re buying your forever home or real estate investing, knowing that your house is in an area with a good reputation and that it’s close to plenty of shops and restaurants can help you determine if it’s worth the price tag.
It may not be easy to spot if some houses are overpriced or underpriced while others are priced correctly, but checking out comparable homes in the same area will give you an idea of what yours should go for.
In conclusion, location is one of the most important factors when buying a home. You want to live somewhere that’s safe, convenient, and comfortable. You can determine if a home has good location value by looking at its proximity to parks, schools, shopping, and other attractions like golf courses or beaches – all things we care about when deciding where we want to live!
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