When shopping for a home, very few people will compromise on location. Have you heard Real Estate Agents and Brokers refer to the saying, “The three most important aspects of real estate are: location, location, location”? That’s because it is vital to ensure a property is in the most desirable location for the type of property it is.
Resale value is one of the main reasons location is so important. After a few years you may want to sell your home for an even better one, and location will play a crucial role in determining the sale price. If your home’s location is not appealing to potential buyers, your home will probably take a long time to sell, while a good location will ensure your investment will be safe and profitable. With the help of loans like the Norcom Dream Home Loan, you can make improvements to the house like getting new appliances in the kitchen, or get a new roof. You can even go to extremes and knock the whole house down and build a new one, however, you cannot change its location.
So the question remains: What determines if a property is in a desirable location? An appealing location will have several components, one of which is the neighborhood. If the neighborhood is unpleasant with noisy and problematic neighbors, then most people will not want to live there. The design of the neighborhood is also relevant. Is it near a busy street, or are the houses too close together? According to the 2014 profile of home buyers and sellers by The National Association of Realtors, only 5% of all home buyers are willing to compromise on the quality of the neighborhood. The distance to the job is another component that determines a desirable location. The extra hassle of spending extra hours and gas money commuting to a job everyday multiplied by the amount of years you’ll spend in the home is not worth it. This correlates with the convenience to friends, family, shopping, and schools. 70% of buyers said commuting costs are somewhat to very important according to the 2014 profile from the National Association of Realtors. The same survey also concluded that 14% of buyers would compromise on the distance from their job, while 7% would compromise on the distance from friends or family, and only 2% would compromise on the distance from school. The quality of the school district plays an important role in location. Only 4% of buyers are willing to compromise on the quality of the schools. Another component that makes a location desirable is the overall affordability of homes within a neighborhood. A homeowner’s budget is a very relevant part of the home buying process, and some may choose to live in a less convenient location because of price. Such a compromise might be necessary due to the price of the land; more desirable areas are naturally more expensive. However, 23% of buyers are willing to compromise on the price of a home, while others are less likely to compromise on location.
Overall, buying a home is a very large investment, so you want to make a well-informed decision. Having a responsible and reliable real estate agent will help advise you on the pros and cons of any home you are considering buying. Just remember, location, location, location.