Your School District Is a Big Factor

It is a natural inclination, and an understandable one, for many people who are looking for a home not to consider the quality of the school district where the new home is located. This can be the case for a single person not thinking ahead to having children, young people purchasing their first home, or a retired couple or individual. Even for people in those situations, though, the desirability of the school district deserves serious evaluation as a factor in the decision.

Real estate agents say that the school district in which a property is situated is a primary factor behind pricing levels of homes in most areas or neighborhoods. Homes in better school districts going for markedly higher prices than similar homes in other areas has become the rule in recent years.

A Difference That Matters
The difference in home prices caused by the quality of the school district is measurable. Homes that are in better school districts will sell for 20-30% more than comparable homes elsewhere. If you consider the median price for a residence in the US in the area of between $180 and 240K, the price difference is significant. You can do the math.

Buyers Are More Particular
In previous years, home buyers seemed to be only worried about such things as the property's proximity to jobs, city centers, places for nightlife or entertainment, and possibly less tangible factors such as trees lining the streets. Now, buyers are more alert to detrimental factors such as being located in school districts that are less desirable. Homes located in such districts may be difficult to sell if the homeowner chooses to move.

Perception Leads to Reality
In some districts, buyers are ready to bid up the price for homes with the best schools. This can account for inflation of real estate prices, or in a slow market can cause homes to decline more slowly. This affects the listed price of other homes in the area as well, after the transaction. Smart buyers acquire school performance summaries and related information early in the search. They know that it is

District Boundary Stability Is Not Forever
No matter the state of the housing market, any reason that might induce a buyer to buy a home in a given neighborhood increases the value of the homes in that location. Both real estate investors and home buyers alike need to know that the bounds of a school district are subject to change, which can change the property values. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim, on short notice, as population shifts or is projected to shift. In real estate, little is guaranteed and almost everything is subject to change.

Information provided by Automated Homefinder, the Highlands Ranch real estate specialists in Colorado.