School District Can Make A Big Difference In Your Homes Value
The location of your home is a big factor in determining its overall value and net worth.
There are many things that are taken into consideration, and the school district that your home lies in can be a big factor in determining how much your home is worth.
For all of you without children who are reading this, you are probably asking yourself, Why would I care about a school district when my children are grown or I simply do not have any?
Well even if you have an empty nest, or have no plans for children, buying a home in a desirable school district can be a very smart financial move.
A February 2, 2007 article by Jo Ann Steinmetz, the editor of Yahoo Real Estate, “The value of a good school,” looks at how your school district matters even if you do not have children.
“Any parent knows that school districts are important when buying a house, but even buyers who don't have kids should be aware of the effect that schools have on a property's purchase price and resale value.”
“In its 2006 survey of homebuyers and sellers, the National Association of Realtors found that 27 percent of buyers cited the quality of the school district as a factor influencing their choice of neighborhood, said Walter Molony, spokesman for the association. Another 19 percent cited convenience to schools as an influence.”
Although the choice is very clear on whether to buy in a good school district if you have children, it is not always as clear-cut if you don’t have the young ones running around.
Many people who are looking to buy a home will have trouble justifying a purchase of a more expensive home just because of the district, but it will most likely pay off.
Of course there are various factors to keep in mind.
“For those with kids, the benefits of highly rated schools are obvious. For those without, the decision is more nuanced, said Sandy Kasik, a Realtor with Coldwell Banker in San Jose, Calif. - one of the nation's most expensive housing markets.”
“‘Someone without kids could be better assured of maintaining or increasing the value of their home if it is located in a better school district,’ she said. ‘However, they would likely be able to get more home for their money in a lesser school district. So it basically comes down to what is more important to the individual couple - lifestyle or money.’”
It is hard to tell the exact benefit of moving into an area with a good school district because there is no hard data on the subject.
But most professionals and industry insiders agree that a home in a good school district will sell for more than a very similar home in a district that is not as desirable.
That is exactly why homeowners without children would reap financial benefits of owning property in a good school district even if they do not have any kids to send to the schools.
“Kasik gives an example of two houses of roughly the same size - about 1,250 square feet with three bedrooms and two bathrooms - built by the same builder at about the same time in San Jose and neighboring Los Gatos, an upscale town that's highly desirable because of its schools. The houses sold nine months apart: the one in San Jose went for $720,000; while the one in Los Gatos fetched $845,000.”