01 Sep How School Districts Affect Property Value
A school districts location has a substantial effect on the property value of homes nearby. A school district with a good reputation will attract families that have school-aged children. Thus, creating a demand for real estate nearby, this demand can make property values go up.
The school district itself is not necessarily directly responsible for the rise in property value. More often good schools will be located in neighborhoods that are well-off and have a higher standard of living.
The affluence in such neighborhoods has a tendency to help create school districts that have high test scores and higher student performance than those located in poorer areas.
Therefore when real estate is located near a good school district, the property value will tend to be higher than surrounding areas.
A good school can bring stability to the community, so when buying a home there is a high demand for a good school close by. With this demand and a limited product such as real estate the property values are higher.
Houses that are located in a highly pursued school district will often sell for higher prices than a similar home in a not so popular school district.
More often buyers will be willing to pay more than their budget and even give up certain amenities in order to get a home in their desired school district.
Better Resale Value
The school district is an important aspect to consider when you are buying a home even if you don’t have children. It could have an intense effect on the resale value of your property.
A property that is positioned in a good school district will be more likely to hold its value or even increase in value when the rest of the market may have slowed down.
A lot of home buyers are prepared to pay more for good schools and are willing to trade a larger home for a smaller one just to be in a better school system.
Whether buying or selling a home in a good school district you can expect that the price will be higher than a less desired school district.