School Proximity and Real Estate Market Value
Complex formulas are used to determine real estate market value but does the proximity of schools, bus stations and other conveniences affect the calculation? As a real estate agent, you need to be aware of the factors that impact the calculation and the ones that will help you close the deal faster.
Many buyers are looking for reputable schools nearby but will they be willing to pay extra, in order to get this benefit? The answer is yes and studies confirm that both the proximity and the reputation of schools can have an impact on real estate market value.
The Mentality of Buyers
Many buyers confirm that they are willing to buy more for a house that is located close to a reputable school. The location provides convenience and gives parents peace of mind that their children will get to school effortlessly.
Several studies take these findings a step further. According to one of the studies, one in five buyers will be willing to give up on a bedroom or a garage, in order to get a house that is located close to a school.
Almost 50 percent of all buyers will be willing to sacrifice retail and shopping options located conveniently nearby for a school.
The presence of a school in the neighborhood is certainly a good selling point and something that many buyers will be looking for. It will provide leverage during negotiations but how exactly does it impact the real estate market value?
Real Estate Value and School Proximity
Identical homes could have quite different prices on the basis of academic institution proximity.
The difference could be a significant one, reaching up to 50,000 dollars for similar properties. This is especially true for cities in the US that have well-established, reputable schools. In these instances, owners of properties located in the vicinities of academic institutions will be incredibly lucky.
It’s also important to keep in mind that private school and more expensive academic establishments tend to attract higher income families. These buyers will usually be looking for sophisticated housing options, as well. This phenomenon has enabled many realtors to close exceptional deals in neighborhoods close to well-known schools.
The final aspect to consider is the reputation of the school and the quality of the education program. Do these bring about a more substantial real estate market value increase? All the individuals that choose a house close to a school with test scores in the 90th percentile will need to pay approximately 100,000 dollars more than the ones selecting houses located remotely.
The difference between the prices of houses having nearly the same size can reach up to 50 dollars per square foot due to the proximity of a reputable school.
The difference in real estate market values due to a nearby popular academic establishment is most pronounced in cities like San Francisco, Los Angeles, San Diego, Washington, Seattle and Miami.
A nearby school provides a strong selling point that realtors should definitely use during the initial presentation and the negotiations. Most parents will be willing to pay more for a house found close to a good school. Good schools are also important for investors who might consider selling the property in the future. Academic establishments are seen as important by all kinds of buyers, which is an excellent possibility for closing the best possible deal.
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