Monday, September 13, 2021 / by Chris Carozza
Why is Location so Important in Real Estate?
Location, location, location - the most important thing in real estate. And why is it so important? Well, firstly, while you can change everything about a particular home through renovations and upgrades, location is something you can never change. Unless your house has wheels, that is. Secondly, no matter how big and amazing-looking a certain home is, nobody will want to buy it if it is located in a non-desirable neighborhood. And, that is why location is essential in real estate. It is something that will either make or break somebody's decision of whether to buy a home or not. So, now that this is clear, let’s see why location is so important in real estate and what makes a good one.
It goes without saying that we all want to live in neighborhoods that are considered safe. Areas with low crime rates will get you more money when you decide to sell, and you will be able to sell quickly, as well. Luckily, it is relatively easy to check whether a specific neighborhood or area is safe or not. You just have to check the local crime rate reports online. Anybody can do this - buyers, sellers, agents, etc.
An example of how effective the impact of crime is on a particular location can be seen in some of the most expensive cities around the world. Let us take New York, for instance. NYC is one of the most expensive cities in the world, and if you start checking its real estate options and prices, you will soon see how much they vary from one neighborhood to another. New York communities that have a high prevalence of crime are always a lot less expensive when compared to those that have little to no crime.
As previously mentioned, the crime rate of a particular area is the most important thing for most buyers. And, since all major cities are currently considered dangerous, many people are seriously thinking about moving to the more remote areas - either suburbs, towns, or villages. Those areas offer safety and peace, so it's no wonder why so many people pack their bags and look for professional help when leaving the city. But, while movers can help with long-distance relocations, only well-experienced real estate agents can help with finding a remote area that still has all the amenities that cities offer.
It does not matter whether we are talking about villages, suburbs, towns, or even metropolitan cities. All buyers have a wish list of the amenities they need nearby. Those are usually preschools, schools, grocery stores, restaurants, shopping and entertainment options, banks, etc. Locations, whether urban or rural, with many amenities that ease people's lives directly impact the price and desirability of a particular real estate property.
Speaking of amenities, schools are almost always one of the more important ones. Having this kind of amenity in a particular area is something many homebuyers require when searching for a home. People who have a family, or plan on starting one soon, put schools on top of their wish lists. But, not only them - even college graduates and young professionals who are thinking about their future are more than concerned with the quality of schools in the area they are considering. This is why schools are such an important amenity and an amenity that can significantly increase the value of a home.
However, keep in mind that retirement or vacation areas usually do not require this amenity. In those areas, the price and the desirability will not be affected by the presence of schools at all.
Another reason why location is so important in real estate is transportation. It is simple - some areas have well-developed transportation systems while others don't. That system enables residents to move easily and freely within a neighborhood or from one part of the city to the other. This is especially important to people commuting to work or driving their children to school.
In bigger cities, if a particular area has a bus or a train stop nearby, the price of the real estate in it will be a lot higher. And it is understandable - excellent transportation options save time and energy - something that we all need in this day and age. However, let us make something clear - properties that have a train station that is just a short walk away are the ones that have a higher value. The ones that are situated right next to the tracks are a whole other story.
Another thing worth mentioning when it comes to desirable locations is the people who live there. This might sound strange and unimportant to some, but let us clarify. For instance, older adults never want to buy a home that is close to a fraternity house. Families never want to buy a home that is close to registered criminals and offenders. It is understandable that everybody has a checklist before purchasing a home and that they have a preference on what kind of people they want to surround themselves with.
Usually, a real estate agent is the one who has all the info about the neighbors living around a particular property they are trying to sell. However, it is always a good idea for buyers to research this by themselves. Sometimes, all that it takes is just talking to the people you meet on the street and simply spending time in the neighborhood. Safety is an essential part of why location is so important in real estate, and the only way to be sure of it is to check it out yourself.