Homebuying can be a challenge. Finding the right property and assessing its value for you and your family is no easy feat. There are several factors that can influence a property’s value, such as its size, its features and amenities, and the condition it is in. To add to these, the current market conditions and recent comparable sales will also have a direct impact on property values. While these all are certainly important, location has consistently been the most influential factor that affects property value. For this reason, you may be familiar with the common real estate adage, “location, location, location.”
There are several factors that contribute to a property’s location influencing its value. Here are the top ways location affects property values:
Proximity to Cities and Urban Centers
In general, properties located in or near major cities and urban centers tend to command higher property values. Urban centers are hubs of economic activity, where there is a wide range of job opportunities in various industries. People often prefer to live close to where they work to reduce their commuting time and expenses. Cities and urban centres are usually equipped with well-developed transportation networks and infrastructure, such as public transit, highways, and airports. With efficient transportation options, people living in cities and urban areas can significantly reduce their commute times and expenses. Furthermore, urban centers provide easy access to a variety of amenities and services. Shopping centres, restaurants, healthcare facilities, educational institutions, and entertainment venues are typically located in urban areas. In addition, cultural events and attractions, such as museums and theatres, are usually located in cities and urban areas. Living near these amenities can be convenient for many people. As such, the proximity to these amenities and attractions can be a significant selling point for properties, which can lead to higher property values.
Neighborhood Quality and Desirability
The immediate neighborhood in which a property is located is a critical factor that can affect its value. There are different factors that come into play when assessing a neighborhood’s quality and desirability. Neighborhoods with low crime rates are generally highly desirable for homebuyers and renters. Many people are willing to pay a premium to live in areas where they can feel secure. For this reason, properties in neighborhoods that are considered safe typically have higher values. Furthermore, the quality of the local schools is often a major consideration for homebuyers with children. Neighborhoods with reputable schools are often attractive to homebuyers. Nearby public transportation options, healthcare facilities, and shopping centers as well as access to community amenities, such as well-kept parks, recreational areas, and community centres, can increase the attractiveness of a neighborhood. Neighborhoods with vibrant community engagement, cultural events, and local businesses can be more attractive to homebuyers who are seeking a particular lifestyle. In addition, properties and neighborhoods that are well-maintained are often associated with higher property values. While neighborhood quality is subjective, neighborhoods that are perceived as high quality will have increased demand and can command higher property values.
Accessibility and Transportation
Most people want to live in places that provide easy access to public transit or to infrastructure, such as highways and major, that can make commuting to work, school, and essential amenities shorter. Proximity to public transportation hubs, such as train, subway, or bus stations, can make daily commutes more convenient, especially for people who want to reduce their reliance on cars. Properties located within easy access to public transit can not only contribute to reduced commute times but can also lead to reduced transportation costs. Homebuyers typically factor in these cost-savings when evaluating a property’s value. Furthermore, areas with planned or ongoing transportation infrastructure projects can signal economic development. Major transportation projects, such as new transit lines or new highways, can attract new businesses and jobs, improving the local economy. As such, properties near planned or ongoing transportation projects may see increases in value over time.
Proximity to Water and Green Space
As health and well-being becomes more important to people, the proximity to water bodies and green spaces can increase the demand for a property. Closeness to nature is often associated with improved physical and mental health. People who reside in places near green spaces or bodies of water may enjoy benefits like reduced stress, increased physical activity, and improved air quality. Views of the water, such as a lake, river, or ocean, or neighboring green spaces, such as a park or a forest, enhance the aesthetics of a property. Beautiful views and surroundings can make a property more desirable and increase its property value. In addition, properties near the water or green spaces can often offer a more private and tranquil living environment compared to urban settings. In addition, bodies of water and green spaces provide opportunities for outdoor recreation and leisure activities, like boating, fishing, hiking, picnicking, and biking. Homebuyers who are seeking a retreat from busy city life may be willing to pay a premium for the peace and solitude as well as the recreational activities and lifestyle these locations provide.
Local Economic Factors
Local economic factors, such as the availability of jobs, income levels, economic diversification, and infrastructure development, can influence property values in an area. Locations with a strong job market tend to attract people who are looking for work, increasing demand for housing in the area. Investments in infrastructure and amenities, such as transportation, education, and healthcare, can attract new businesses and residents as well. Areas with a diverse range of industries and businesses are often more resilient to economic downturns. Properties in locations with economic and business diversity may have more stable values than those in areas that are reliant on a single industry. Finally, higher average income levels in a community can lead to higher property values. Areas with robust economies can attract more residents and drive demand and increasing prices for housing. Higher property values can attract more affluent residents who are willing and able to spend a premium on housing.
Property values can vary depending on numerous factors. If you are looking to buy a new home or property, it is important to work with a real estate agency that possesses knowledge and expertise of the local real estate market and is up-to-date with current property values in your desired location. A good real estate agent would have a deep understanding of the local market, including the recent trends, neighborhood desirability, planned and ongoing projects, recent comparable sales, and current property values, which can help you make informed decisions during the homebuying process. Furthermore, a well-connected real estate agency will also have professional relationships with various industry professionals, such as mortgage brokers, home inspectors, appraisers, contractors, and attorneys. A reputable real estate agent can refer you to the right professional and can help you navigate the complicated web of requirements, transactions, and paperwork associated with buying a new home. Well-connected real estate agents can leverage their network to find new properties and may also have access to off-market or unlisted properties, which can offer significant opportunities for homebuyers. Finally, a reputable and well-connected real estate agent will have good relationships with other real estate agents. They can more effectively negotiate with each other to reach the best outcomes for their clients.
Working with a reputable and well-connected real estate agency can help simplify your homebuying experience. If you are in the market for a new home, working with a reputable real estate agency can help you find the perfect location of your future home.
