“Location, location, location,” is one of the most common mantras in real estate. It doesn’t matter if you’re buying or selling a home. The truth that location matters in real estate rings true. But why, exactly? Why is location so important, especially when you’re buying a home?
Location can affect a property’s value
If there is one thing that can easily increase or lower a house’s value, it’s the location. It is mainly because several other factors are also affected by it.
- Accessibility – For instance, there is the general accessibility of the property. How far is it from work, recreation, and entertainment options? Is the area served by public transportation? How bad is the traffic? Is the neighborhood highly walkable and perhaps bike-friendly?
- Lifestyle – Location also plays a role in determining what you can and cannot do in the community.
If surfing or going to the beach is your thing, the Phoenix metro area might not be the perfect fit. If you’re looking for some peace and quiet, a house located downtown might not work. If outdoor recreation is a key part of your life, it would be wise to look for homes in places with or near parks and green spaces.
- Opportunities – This can play out differently depending on the members of the household. For instance, educational options in the area must be considered if you have school-age children. Neighborhoods with great schools tend to be more expensive. Meanwhile, young professionals might be looking for career opportunities as well as some avenues for recreation and leisure.
Other factors can also affect the location and the implied value it brings
The location is highly susceptible to market and economic movements. A neighborhood that was considered undesirable in the past can easily become a hot and up-and-coming real estate market overflowing with potential. Similarly, an established and highly esteemed neighborhood can fall from grace in the future. All of these things can happen because of the economy.
Tying in with the former is the location’s level of development. On one hand, highly developed cities with a dense population have less room for growth, making space a premium. On the other hand, communities with considerably more space for expansion have properties that are relatively more reasonably priced.
Another thing that can affect a location’s perceived value (and, in effect, the homes in the area as well) is the overall safety of the place. Communities with higher crime rates are understandably viewed in a negative light and therefore valued lower. Meanwhile, neighborhoods that are deemed safe are considered attractive places to live.
In conclusion, location can make or break your investment
It’s time to take a closer look at location as you shop for homes and think about how it can affect your real estate investment in the long run.
As some of the most experienced realtors in Phoenix, Arizona, we can help you look for houses for sale in the best neighborhoods and communities. Get in touch with us at 480.359.6519 or info(at)urbanluxere(dotted)com and tell us all about your dream home.