Location article

Just How Important
Is Location?

Provided by Jay Burnham, VP
Coldwell Banker Residential Brokerage

In London, property values are booming, however, values of homes in outlying areas lag behind values in more central zones. Their inaccessible location makes them less desirable.

Some outlying boroughs are benefiting from the current extension of the Underground subway system. In areas newly served by the Underground, property values are jumping. A London paper recently reported that the addition of an Underground station within a 15 minutes' walk of a property increases property values by up to 20 percent.

The same phenomenon occurs in the United States. Property values tend to rise in neighborhoods where rapid transit becomes available and cuts the commute time. For example, in the San Francisco Bay Area, property values boomed in the Oakland community of Rockridge when the Rockridge Bay Area Rapid Transit station came into existence.

Homes located within the jurisdiction of good school districts tend to have higher property values than do areas served by less desirable schools. But, while a home in a good school district usually benefits from that location, a home's value can be adversely effected if it's situated directly across the street from a school. Noise makes the location less desirable.

Location within a community can an effect a home's value. For example, a location that's within walking distance to transportation or shopping can add value to a property. But, if your home is located too close to either shops or transportation, this can lower value.

A location next to a busy freeway or on a heavily traveled road can lower property value. Most home buyers prefer a quiet location without street noise and traffic congestion.

Within subdivisions, some locations are preferable and, therefore, more valuable than others. Cul-de-sacs tend to be quiet, private locations, and often homes located there will command a higher price. Corner lots, on the other hand, often sell for less because they are more exposed.

HERE'S A TIP: Find out as much as you can about the desirability of a location before you buy. Talk to neighbors who live in the area to find out if there are any location factors that might effect property value that you should be aware of.

Pay attention to how well-maintained the neighbor's homes are in the area immediately surrounding the one you're considering. A well-maintained neighborhood shows that owners take pride in their homes.

Is building planned in the neighborhood? The street may seem quiet now. But, consider the effect on your sanity, and your property's value, if a freeway is constructed just behind your new home. The city planning department should be able to provide you with information about proposed changes in local streets and transportation facilities.

Check with the Chamber of Commerce to see if there are any changes going on with the local economy that you should be aware of. Are businesses and industry moving into or out of the area?

A growing economy creates jobs, and with employment comes a demand for housing. When the demand for housing exceeds the supply, there's an upward pressure put on home prices. This often leads to home price appreciation which benefits local property owners.

Safe neighborhoods are desirable locations in which to live. Crime rates can have an effect on property values. When crime rates drop, property values often rise, and vice versa. Check with the local police precinct to find our if crime is a problem in the area where you are considering buying a home.

JAY BURNHAM, VP
Coldwell Banker Residential Brokerage
PREVIEWS International® Property Specialist
54 Dodge Street
Beverly, MA 01915
978.233.2828

Designations Earned: CRB, CRS, GRI, RECS, SRES