Location Location Location

Next time you’re shopping for a new property, keep the following factors regarding location in mind.

Centrality

What part of a city you choose to live in will drastically affect how much you pay for your home. Land is a finite commodity, so cities that are highly developed and are bound from large amounts of additional growth tend to have higher prices than cities that have too much room to expand. When sprawling cities experience a population exodus, it’s the outlying areas that tend to suffer the most severe declines in property value.

Neighborhood

Neighborhoods tend to be a matter of personal choice.  However, a truly great neighborhood will have a few key factors: accessibility, appearance and amenities.  Your neighborhood may also dictate the size of the lot on which your house is built.

Regarding accessibility, you should look for a neighborhood that is situated near your city’s major routes and that has more than one point of entry. Commuting to and from work is a big part of many people’s day, so a house with easy access will be more desirable than one that is tucked away and can only be accessed by one route.

The appearance of the neighborhood is also important.  Large trees, landscaping and nearby green or community spaces tend to be desirable.  You can also judge the popularity of the neighborhood based on how long homes in that area tend to stay on the market; if turnover is quick, you’re not the only one who thinks this is a desirable place to live.

A great neighborhood should also include important amenities such as grocery stores, shops and restaurants. Most people like to frequent places that are convenient – if you need to drive a great distance to get to anything, this is likely to make your house less attractive.  The distance from and quality of local schools also play a huge role.

Development

It’s not just present amenities that matter, but future ones as well.  Plans for schools, hospitals, public transportation or other public infrastructure can dramatically improve property values in the area.  Commercial development can also improve property value.  When you’re shopping for a home, try to find out whether any new public, commercial or residential developments are planned and consider how these additions might affect the desirability of the surrounding areas.

Lot Location

The next thing you need to consider is where the house is actually located. In this instance, there are a few things you should watch out for.

For example, if your home is on a busy road, you will probably get it for a lower price, but it will also be more difficult to sell down the road. The same may hold true for houses that stand next to or back onto commercial property, such as a grocery store or gas station, or houses on streets that get an unusual amount of parking traffic and parked cars, such as those near large churches or community centers. This is why a large number of such homes are rentals.

The House Doesn’t Matter

Suppose that you have narrowed your choices to two homes that stand side by side in a great neighborhood. One needs repairs and updates, but has a huge lot. The other is in tip-top shape but sits on a lot half the size. The prices of the two homes are similar. Which do you choose? This is one aspect of house hunting that surprises a lot of people (except for maybe real estate investors). In most cases, the beat up house is the better investment.

Why? Your house is a depreciating asset. The lot, on the other hand, will maintain its value (or likely appreciate) relative to the house. If you bulldozed both houses, the larger lot would sell for more. So, if you can, choose a bigger, better shaped or better situated lot over a nicer house. A less attractive house can always be updated, added on to or replaced altogether while the lot can’t be changed.

This entry was posted on Tuesday, May 25th, 2010 at 9:08 pm and is filed under Agent Editorial, Buyer & Seller Tips, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.