Your New Home's School District Matters -- With Or Without Kids

It is understandable for some individuals who are shopping for a home not to think about the rating of the school district as a relevant thing to consider when home shopping. This can be the case for a single person not thinking ahead to having children, young people just beginning, or possibly an older individual or couple. It might be a surprise for you to learn that even in those cases, the desirability of the school district should be a significant factor to include in your plan. A Studio City home in the Carpenter School District will demand a higher price than a Studio City home that is not.

Home Prices Are Influenced by the Quality of the Schools
Many real estate professionals say that the school district in which a home is located is the main factor that moves home prices in many areas or neighborhoods. With increased sophistication and knowledge of buyers in recent years, the market has acted to ensure that homes in the higher quality school districts sell for significantly higher prices than similar homes in other areas.The difference in home prices attributable to the rating of the neighborhood schools is a real part of the market reality. Property located in the better-rated school districts can be priced at up to 30% more than homes in other neighborhoods. If you consider the median asking price for a single family home in the area of between $180,000 and $240,000, the difference is significant.

In previous years, home buyers were more concerned with such factors as the property's location with respect to places for nightlife or entertainment, downtown businesses, shopping centers, and possibly things like the appeal of the neighborhood. Now, home buyers are more sensitive to negative factors such as being located in a school district that is less desirable. Homes located in such areas can be difficult to sell when the homeowner chooses to move.

In some areas with the best school districts, buyers actually bid against each other. This can account for inflation of housing prices, or in a slow market can let homes decline more slowly. This affects the listed price of all other homes in the area as well, after that transaction has closed. Smart buyers acquire school performance reports early in their search. They know it is an important factor in the value of the home and an factor in the price at which the home can be sold in a future transaction. School rankings are frequently given greater weight than neighborhood demographic data.

In a volatile real estate market, any reason that might compel a person to buy a home in a particular neighborhood increases the value of those homes. Real estate investors and home buyers alike need to remember that the boundary lines of a school district can be changed, which can affect the property values significantly. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim. In the real estate market very little is guaranteed and almost everything is subject to change.

This content was presented by Automated Homefinder, the Colorado Louisville real estate experts.