Location, Location, Location & Value
It’s an unchanging and essential factor when it comes to both pricing your home to sell and looking at what it’s worth. Your land and home value can increase or decrease at any given point due to factors both in your control and not.
There are many things that influence the value of a home, but the surrounding area; the activities, and commercial buildings nearby are what influence it the most. We put together a list of the most influential factors that go into the pricing of your home—both negatively and positively.
6 Factors That Increase Home Value
Schools
Homebuyers with children value their education and development and as a result, are willing to pay more to live in a home that is in a top school district; one with high test scores, a good reputation, and close by. Many home buyers with children consider this to be one of the biggest factors in choosing one home over another.
Shopping
We all need to eat, right? Homes near local grocery and shopping stores usually sell for more because it’s both convenient and cuts back on the amount of driving we need to do. And, being minutes to a popular grocery store like Trader Joe’s, Whole Foods or a 24-hr Walmart has shown to increase your home value by 2-3%. Homes that sell for top dollar and sell quickly are those cater to our conveniences and fit into our daily habits.
Entertainment
Homes that tend to be within walking distance or a quick drive from entertainment like movie theaters, outdoor plazas with fun activities for the entire family, parks, golf courses, and fitness studios and clubs usually sell for more money than homes farther away.
Desired Views
Depending on where you live or are looking to move to, views of mountains, panoramic ocean views, or even the sounds of distant crashing waves tend to increase value and even help sell your home faster.
Outdoor Recreation
Access to outdoor recreation like the beach, paseos, trails, and parks usually increases a home’s value. Whether we’re taking our pets for a walk, enjoying a breath of fresh air or ocean breeze, there’s nothing quite like the outdoors to connect you to your surroundings.
Starbucks & Dunkin
Most of us love a good cup of coffee in the morning, especially if it’s on one’s way to work. According to Forbes, homes that are within a ¼ mile of a Starbucks, have appreciated 96% while homes near Dunkin Donuts have appreciated 80%.
6 Factors That Decrease Home Value
Power Plants
Power plants usually obstruct the desired view and emit toxicity into the environment of which tends to lower the value of your home. In fact, the University of California at Berkeley found that homes within 2 miles of power plants are priced 3-7% less than homes farther away.
Busy Areas
Although being close to railroad tracks, airports, and busy intersections is convenient for when you need to leave, it can be pretty noisy when you are at home which could drop the value of your home.
Crime
Areas and neighborhoods with higher crime rates tend to decrease home values. The American Economic Review has found that if a registered sex offender were to move into your area, it could reduce your home value by 12%.
Low-Rated Schools
As we said above, the top-rated schools are a big priority for some home buyers so homes located in areas with a low-ranking or closed down school could result in a home value reduction of up to 22.2%.
Cemeteries & Funeral Homes
Whether you believe in ghosts or not, the thought of living near a cemetery or funeral home is a bit eerie. According to Realtor.com, homes with a cemetery close by could be priced 12% less than homes in other nearby areas.
Hospitals
You may think that being right around the corner from a hospital is a good thing in the case of emergency, but with hospitals comes ambulances and sirens. And there’s no telling what time of day or how many times a day you might hear these noises. Hospitals in close proximity have decreased home values by around 3%.
