It’s no secret that one of the most important factors to consider when buying a home is location, but how do you balance that against the cost of finding the best home for you?
Realestate 88 Inner City sales manager Dane Craig said choosing the right neighborhood is crucial because it can determine the rate of appreciation, or whether appreciation occurs.
“It can also impact your ability to find suitable tenants for investment property,” he said.
Realmark North Coastal sales associate Alex McInerney said the location of your home could have major implications for the future value of the property.
“Location creates desirability, desirability creates demand, and demand increases prices,” he said. “If the home is in a desirable neighborhood and in a place where people move, you can expect its value to stand the test of time – and even appreciate – over the years. “
According to Realmark North Coastal manager Jeanette Bates, what makes an attractive neighborhood is different for every person and family, but all great neighborhoods share some common factors.
“Buying a property in an area known for its great schools has a positive effect on the value of the property,” she said. “Many buyers are happy to spend a little more on a home to make sure they live in the catchment area of a large school.
“Transportation and the ability to walk contribute to the ease of getting to work and school, and this becomes an important factor in choosing a neighborhood.
“Recreation and lifestyle options have become a big factor since the start of the pandemic, as people want easy access to parks, playgrounds, beaches and athletic fields.
“Neighborhoods where homeowners take pride in their home and show it off are increasingly popular and retain and increase in value. “
Mr. Craig listed other factors to consider when buying a home.
“It is important to look at the historical growth of the region over time,” he said. “Look for the potential for capital growth – are there any future plans that could have a positive impact on the neighborhood?
“Ripple effects from neighboring suburbs can have a positive or negative impact on future resale value.
“Neighborhood safety is also important; is it family owned or known to have a bad reputation?
“Does the neighborhood have a good impression? Is it clean and well maintained? “
Finding the answers to these questions can take a bit of research, and Mr. Craig said there is more to you than just pulling out the binoculars and spying on the neighborhood.
“Something as simple as knocking on your neighbor’s door and asking them what they think of the area can be very informative,” he said.
“Take a walk around the area looking at local amenities and speak with area owners.
“Other good ways that don’t involve going out, but are just as effective, are things like SEO data online to gauge past sale prices on a particular street or building.
“Looking at census statistics to assess different demographics, crime rates, population composition, education levels and transportation methods is very helpful.
“And, of course, a simple internet search to see if there is anything suspicious in the neighborhood.”
Mr McInerney, however, warned that buyers should avoid looking at the current state of a neighborhood and start paying attention to its future.
“A lot of people are looking to buy in a safe neighborhood, but the fundamentals of real estate investing are missing,” he said. “Safe neighborhoods are good to consider, but it’s important to ask the question: where will this neighborhood be in five years? “