Thinking about buying a new home? According to totalmortgage.com, here’s what to look for when it comes to getting a good return on investment.
A home’s value can be determined by several obvious factors like the square footage, layout, condition, age, etc. However, there are other factors that may not be so obvious, but still influence a property’s value.
For homeowners with children or planning on having children, being close to good schools is often a big deal. Boundary maps determine which school district a home is in, and many people are willing to make sacrifices to live in a favorable district. Generally speaking, more affluent homeowners tend to live in desirable school districts and vice versa. Consequently, finding a home in a sought-after school district should increase your home value.
Having convenient access to a variety of stores has a positive correlation with the average home value in an area. This can include coffee shops, grocery stores, fitness center, boutiques, bookstores, wine shops, small movie theatres, etc. Specialty grocery stores in particular can increase home value.
A study of home values in Portland, Oregon found that “if a specialty grocery store sits within a block and a half of your house, your property values should be 20 percent higher than if you don’t have the store nearby.” Even large shopping centers and massive retail chains like Wal-Mart contribute to higher property value.
Being close to dining and not having excessive drive times should also work to your advantage when looking to boost home value. Whether it’s a sit down restaurant,a diner or fast food place, multiple choices within a close proximity are desirable to most homeowners. Fine dining establishments can increase the value even further because of the perception of upscale quality.
Finally, open spaces where people can enjoy nature and engage in recreational activities are also highly sought after. As long as they’re well maintained and in a low crime community, parks can be a significant property booster. A great example is Centennial Olympic Park in Atlanta, which after being built increased adjacent condo prices from $115 to $250 per square foot.
When you combine all of these amenities and they’re within a close proximity of your home, it means one thing:
The ease in which people can walk rather than drive plays a huge role in home value. A 2009 study by CEOs for Cities looked at 94,000 real estate sales of comparable homes in 15 major markets. The study found that “in 13 of those markets, the walkable neighborhoods had higher home values than further-out neighborhoods with similar homes.”
To be more specific, “walkability adds anywhere from $4,000 to $34,000 to home values.” Not only does this make it more convenient for people to get where they need, but it usually signifies that the area is safe, good for raising kids and has a social aspect.
You can read the full article by total mortgage here.