By Charlotte Sears
President, Atlanta
Coldwell Banker Residential Brokerage

It’s often said that residential real estate is all about “location, location, location,” but it could just as easily be about “schools, schools, schools.” People searching for a new home consider a variety of factors in making their decision, from the number of bedrooms and baths to proximity to work. But the quality and reputation of the local schools can often make or break the deal.

According to the 2014 National Association of Realtors® Survey of Home Buyers and Sellers, 57% of families with children under the age of 18 named “quality of school district” as a factor influencing their neighborhood choice. A 2013 survey by Realtor.com produced even higher numbers – 91% of the 1,000 people surveyed said school boundaries were an important consideration in their home search.

And those buyers feel so strongly about having great schools, they’re willing to give up other things to get them. When the National Association of Realtors® looked at which factors buyers compromised on when purchasing a new home, “quality of the schools” and “distance from school” were last on the list. Buyers were more likely to compromise on price, home size, home condition, distance from job – literally everything else before they would compromise on schools. The Realtor.com survey found buyers were willing to sacrifice a bedroom or garage in order to get a home in their desired school district. In other words, when school quality matters to buyers, it really matters.

In fact, buyers are even willing to pay more for a house in a great school district. Realtor.com found that one in five home buyers would pay 6-10% above their budget for the right school. One out of 10 buyers would pay 20% above! A look at housing prices in good school zones seems to bear this out. A 2012 study by the Brookings Institute found that across the 100 largest metropolitan areas, housing costs an average of 2.4 times as much, or nearly $11,000 more per year, near a high-scoring public school than near a low-scoring one.

One added element that makes schools a particularly important feature here in Atlanta is the age and demographic makeup of our population. The median age in metro Atlanta is 33.2 as compared to the national median of 37.2, and that’s due to the higher than average number of children here. A 2015 data analysis by researchers at the Martin Prosperity Institute found that the Atlanta metro ranked in the top 10 large metros for percent of children 18 years of age or younger.

It makes sense that families with school-age or younger children would make finding a home in a good school district a priority. For those with no children in the home, though, the importance of the school district drops to just 9%. However, the top factor across all demographic categories was “quality of the neighborhood.” Guess what’s often a key factor in high-quality neighborhoods – the quality of the schools.

A look at a few of the best schools in the Atlanta metro area reveals that they’re located in some of the most sought-after neighborhoods. Atlanta’s top-performing Morningside Elementary and Warren T. Jackson Elementary are in Morningside and Buckhead respectively – two of the most desirable intown communities. Looking OTP, we find two of U.S. News & World Report’s top-10 Georgia high schools, Milton High School and Walton High School, in the extremely popular suburbs of Milton and East Cobb.

So, which came first: the chicken or the egg? Does the school elevate the quality of the neighborhood or vice versa? That’s hard to say with any certainty. While many of Atlanta’s best schools are in its most desirable areas, there are also highly sought-after neighborhoods with under-performing schools, as well some excellent schools located in less-than-ideal parts of town.

When it comes time to sell, though, being in a great school district will help make your home appealing to the maximum number of buyers. After all, buyers who don’t care about schools won’t reject a home because it’s in a good district, but the buyers who do care won’t even look at a home if the schools are bad – and that includes corporate buyers. Home Partners of America, a company Coldwell Banker Residential Brokerage works with that purchases homes for qualified applicants to lease with the intent to buy, will only purchase a home if its zoned public high school is ranked in the top 50% or above.

There’s a lot that goes into the value of a home or neighborhood, and the quality of its schools is just one factor. Looking at the research, though, it’s hard to deny it’s an important one. Whether or not you have kids, it might be worth keeping those other three little words in mind as you house hunt: “schools, schools, schools."