When it comes to land, commercial property and personal homes, location is important. The location of your home, specifically the neighborhood, matters just as much, if not more than, the specs of the home. External obsolescence is the definition applied to the factors outside of the home that impact the value of the home itself. You cannot exercise control over all of the factors, but it is important to be able to assess the keys of how your neighborhood affects your home's value. Here are four of those keys that determine the value of your home.
According to a study done at the University of Chicago, when the crime rate decreased, the property value increased. No one is going to pay the market value of a house if it were to stand by itself or in a good neighborhood while it is in a locale where drugs are being sold on street corners, burglary rates rise or prostitution is as common as kids offering to mow lawns for money. Overcoming a difficult crime rate can make getting a good price when you sell challenging. In fact, it can make selling at any price challenging.
The price of homes are better with quality schools close by. Demand for property is higher in good school districts. Unfortunately, failing and struggling schools will lower property values in their school districts. When you live in a school district that invests time and money into their school problems, the surrounding neighborhoods will often reflect the results of these efforts. Finding a community with a successful school nearby is a good indication of the safety of the surrounding area.
Transportation Infrastructure and Curbside Appeal
This applies to the aesthetic value of your home, your neighbor's homes and the look of the streets. For example, you can dress up the outside of you property quite a bit, and it will stick look tacky if it is surrounded by tacky yards. Also, subdivision property owners will suffer lower values if they have damaged streets. Meeting with neighbors or discussing it at a home owner association meeting is a great way to address the problems. It is easy to keep properties cleaned up because in many places it is the law, and according to T. Luckey Sons, Inc., concrete slab jacking is a quick, inexpensive way to smooth out streets, and the work can be done in any kind of weather.
Homes in neighborhoods with nearby job opportunities or in cities with good labor stats will be more valuable than properties in areas or cities struggling with high unemployment. If your home is in an area near research centers, technology manufacturers or universities, it will be worth more. There will be more diversified labor options and growth opportunities to attract buyers willing to spend more on a house to get into the area.
Becoming an educated seller or real estate investor requires learning how neighborhood quality impacts value, among other things. Messy, unruly, noisy or criminal elements can lower your home value no matter how pristine you and your home are. There are ways to fight back. If you want to increase the value of your home and neighborhood, it will take work, but it will pay off personally and financially.