A few years back, “the Starbucks effect” became a legitimate term to explain the higher real estate values associated with living close to the coffee house. The Starbucks effect is tangible. Data has shown that between 1997 and 2013, homes closer to the coffee shop increased in value by 96%, compared to 65% for all U.S. homes. There are more ways than just following Starbucks to consider when finding a home that’s property values are more likely to increase.
Schools – Families seek out neighborhoods with good schools for obvious reasons. Living close to a quality elementary school is especially desirable for parents who envision walking with their young children in the morning. From a value standpoint, a location close to well-performing schools can be a smart decision for buyers regardless of their family status. It can result in up to a $200,000 increase in home values. Unfortunately, not all schools are the same so it is important to make sure it is a quality school district. Beyond that, there is a problem with being to close to a school. If you’re in the path of the school pickup and drop-off, which creates considerable traffic, or directly across the street from a playground, which means there is noise throughout the day, you could have trouble when it comes time to sell. A location that is close enough to be easily accessible but out of range of the daily inconveniences is often the best option.
Area Conveniences – Starbucks isn’t the only business showing higher property value results. High-end grocery stores like Trader Joe’s and Whole Foods are showing a 96% increase in property values. By the end of 2014, homes within a mile of either store were worth more than twice as much as the median home in the rest of the country. But, that doesn’t mean all area amenities boost home value. Adult entertainment spots, industrial businesses, a nearby airport that puts the home in the path of flights, and small businesses like tattoo parlors, check cashing, cash advance, or pawn shops that can be indicators of a lower-income or high-crime area can drive people away.
Freeways – A location close to major thoroughfares can be a selling point since it helps homeowners cut down on the dreaded daily commute. Many suburbs require an additional 10 to 20 minutes in the car after exiting the highway. Promoting the convenience of a home closer in can help it stand apart. However, having to endure the daily noise, congestion, and pollution of living right next to the freeway is not appealing. Being close (but not TOO close) is key.
Quiet Location – A home that’s in a peaceful area surrounded by nature may be a benefit to buyers seeking a serene setting. A house that backs up to nature or is close to hiking trails can sell for more than a house in the same neighborhood that’s only surrounded by other houses. However, you don’t want to go to far into seclusion. To much quiet can be a bad thing as well.
We all want our property value to increase when we sell our homes. These are just a few of the key indicators that a property’s value could be on the rise. For more information call Helen today at 847.967.0022 or email firstname.lastname@example.org.