Homeowners and real estate investors are always concerned with the question, “What is my property value?”. For any residential property, the number one determinant of price is location. The infrastructure, demographics, income, political climate, and educational environment in a town, will influence home prices more than the home’s physical condition.
Transportation improvements tend to drive prices higher. The construction of new transportation hubs, such as train stations, airports, or highways, often means that the community has a positive economic outlook. If a region is undertaking considerable improvements in transportation, demand for real estate is often higher, and so are home values.
An area that is experiencing population growth may also have higher home values. If population growth in one town is outpacing growth in adjacent towns, then people are moving to that town for a reason. Since demand for homes will inevitably be higher, prices will be higher, in that area. When selling a home in a high-growth area, sellers should be able to communicate to buyers the reasons for purchasing a home in their location.
Growth in average income reflects favorably on a town. When average income is increasing, people in the town have more money to spend, and, as a result, more buying power. High income levels will translate into high home values, thanks to the high-income jobs which are usually behind those great incomes.
Political leadership is an often-overlooked factor in determining home values. Towns which are run by innovative, flexible, and entrepreneurial people will inevitably attract good things, and higher property values. Contacting the mayor’s office, or the Office of Economic Development, will provide homeowners and investors with a great deal of information about a town’s economic and political climate.
Education is one of the most significant determinants of a town’s appeal. Good test scores, staff who care about children, and students who come to school ready to learn, are all characteristic of excellent educational systems. A number of websites are available, which rate area schools, and offer information about area test scores.
Location influences home values like no other factor, including physical appearance. When areas are prosperous, jobs are growing, and population is booming, people will be drawn into that area, and demand for homes will increase. When homeowners ask, “What is my real estate value?”, and then look around to see that their home is in a thriving area, then they may be assured of a positive answer to their question.