When searching for a new home, many homebuyers place importance on the condition of a home and the features it has to offer. While these are both crucial things to consider, the location of a home can actually serve more value than the upgrades inside.
The surrounding area, which can include accessibility to schools, potential for natural disasters, shopping, and more, can impact a home’s current value, insurance premiums, and its resale value in the future. Let’s explore how each of these areas is impacted.
How Location Impacts a Home’s Current Value:
The location of a home plays a substantial role in its value and desirability, which are reflected in the listing price. Applying the simple rules of supply and demand, if a home is selling in a high-demand area, the cost will be higher than if the same house were for sale in a less desirable location. Realtors do significant research when creating a listing based on the current home values of that area to create a fair price.
How Location Impacts a Home’s Insurance Premiums:
The location of a home can also impact insurance rates. Factors such as safety ratings or natural disaster occurrences can increase premiums more than many individuals realize. Discussing things such as flood plains and local crime rates can help determine the impact a higher insurance rate may have on your monthly payment.
How Location Impacts a Home’s Future Resale Value:
Another thing to consider when buying in a desirable location is the future development of land surrounding a home and how it can impact the resale value in the future. Even if the location is not considered high-demand at the time of purchase, if there are plans to expand school districts or add shopping nearby, the home values will likely increase over time, making it an excellent place to invest for a first-time homebuyer.
Finding a home that you love is a feat that most real estate professionals are willing to take on. Finding a home you love in a location that provides top-notch schools, shopping, high walkability scores, and good safety ratings may be more challenging, but a good realtor will be happy to come alongside you to find it.
If you want the perfect balance of “home, sweet home” and prime location, call me at 717-253-3259 or visit www.karentavenner.com to work with an Accredited Buyers Agent!