If you are looking for a new place to call home via buying or renting, or if you are an investor seeking an excellent investment property, then it is pertinent to remember that. Here are a few tips to help you look for the things that matter when finding a home with a great location.
Why Is the Location of Real Estate So Important?
In short, it’s essential to determine what is important to you when it comes to location and then find a property that meets those that are the highest on your priority list. If you’re an investor, the same is accurate; however, make sure you are specifically looking for items that are marketable to your target audience. For example, if you’re looking to buy a home and sell it for a profit, make sure you have selling points to help you with the sale. Suppose the neighborhood is community-friendly with many individuals the same age as your target audience, for example. In that case, that can go a long way in helping you sell the home to that demographic. On the other hand, if you are purchasing investment properties for rental purposes, make sure the property is located in high-traffic areas near schools, military bases, etc.
What Is the Difference Between Good vs. Bad Location?
There is no denying the value of a good location for real estate. But, how can you know the difference between a good and bad location for real estate? Let’s take a closer look at some of the factors that make up a bad location.
Proximity to Noisy Landmarks
A primary factor that makes a home in a bad location is its proximity to notoriously noisy landmarks. Some noisy places in any neighborhood may include the following:
School
While it may be convenient to be located right next door to a school if you have children, you’ll find that noise and traffic might cause issues for some owners and renters. Between traffic from parents dropping kids off and buses and loud noises from kids playing and yelling, this might be undesirable to some.
Airport
Being close to an airport might seem fun if you’re a jet setter. But, keep in mind the noise factor that comes with living so close to an airport. Jet engines operate here for typically 18 hours a day. Needless to say, things can get noisy.
Hospital
Being close to a hospital may be desirable for safety reasons, but you should think of the noise associated with it. Having a home close to a hospital means hearing constant sirens throughout the day and night.
Fire Station
Like a hospital, a fire station will be pretty noisy with sirens. Be mindful of this if you are buying a home near a fire station.
Backing a Freeway or Busy Intersection
When you’re driving along a freeway, you’re likely to see homes with backyards that back it. It doesn’t matter where the country home is located. If it’s this close to a freeway, it is likely to be considered undesirable. Similarly, backing, or being located close to, a busy intersection has a similar effect on buyers and renters. Not only are these areas notorious for noise, but they also present a level of safety concern as well.
Varying Good vs. Bad
It’s not uncommon to find that the good versus bad qualities of a location may vary across the country. It’s essential to research the area you are looking to buy to get a better idea of what is good and bad. If you’re unsure, you might want to consider renting in the area before committing to purchasing. Renting first allows you to get a better idea of what is more desirable.
Factors of a Good Location
Now that you have a better idea of why the location of a home is so important, it’s time to look closer at the factors that make up a good location for real estate.
Centrality
When buying or renting, you should look for a home that is convenient for you and your family and meets your expectations. For example, do you want to drive an hour to and from work each day? If not, consider how close your property is to your work. Similarly, try to purchase a home that does not involve commuting in a high-traffic area.
Neighborhood
Along with proximity to work, you should also look at the neighborhood, community amenities, local school district, etc. Create a shortlist of the most important things involving the location of your home to help you when searching for a home to buy or rent.
Good Schools
If you have school-aged children, then the school district may be critical. On the other hand, if your children are already in college or you do not plan to have babies in the near future, then the school district may not even be on your list.
Lot Location
When searching for a real estate location, you also should keep in mind the actual lot. If you are willing to settle with some of the less desirable factors, you may be able to purchase at a lower rate but keep in mind it might make it more challenging to sell in the long run.
Development
When looking at the location of a home, it’s essential to look beyond the current amenities it offers. Take a closer look at the development in the surrounding idea to understand what’s to come in the future. Plans for new development, including new:
- Public transportation
- Hospitals
- Schools
- Civic infrastructure
Any of these additions will boost the value of a property in its immediate area. Keep in mind residential, commercial, and public development in the present and future for the area of a home.
The House
If you’re between two homes with similar prices, with one needing more repairs on a larger lot, a surprising factor is the one needing help will likely be the better investment. The reasoning behind this is that you must realize home is a depreciating asset. Alternatively, the lot it sits on will maintain or appreciate its value over time. When it comes down to it, remember that a home that is considered to be less attractive can always be replaced, added on to, or updated, but the lot can't change.
Water Access and Views
Across the country, one of the most popular features of a home location is the access and views of nearby water. Regardless of the city or town, people are always willing to pay more to be near the water or for a great view.
Access to Public Transit or Freeways
The value of a home will decrease in major cities the further you get from subway lines, bus systems, or other mass transit systems. A home’s prime location is near public transportation, with easy access. In some locations across the country, the need to commute via car is inevitable. Proximity to major freeways makes for a prime location in these areas. Adding commute time to get to a freeway will decrease property value.
Final Thoughts
At the end of the day, the location of real estate is crucial when buying or renting a property. Make sure you consider the location in your next real estate transaction.
