How location affects a property’s value
As ideal and romantic as living in your own private island may seem, there are some external factor that affect a property and may make you reconsider such idea as well as rethink about the real worth of that house that you are planning on buying or selling. Such factor is location and in this article we will give you some insight in order to better understand that intangible attribute of a property.
A property’s location will always affect its perceived value due to a variety of reasons that can be explained in accordance to each buyer’s specific needs. While location has a great impact on a home’s value, it has nothing to do with the physical construction of the property itself. Location is not about expensive floors and counter-tops nor a beautiful view over the beach, not even about square footage, it is all about nearby access to things that directly affects the daily life of its inhabitants. This means having easy access (preferably within walking distance) to public infrastructure, amenities and exposure (or lack of) to loud sound sources.
Proximity to public infrastructure, such as schools, hospitals and public transportation, significantly increases the added value that location provides to a property. From that point of view a home’s added value increases in relation to its proximity the center of the city, which basically guarantees easy access to all of these services.
It is no secret that commuting is a huge concern in California and urban sprawl increases the time spent in traffic jams, however there is no perfect location since moving outbound from the city grants access to larger square footage at a more affordable price tag.
Food deserts are a common scene across America and they can vastly hinder a property’s value. A food desert, as defined by the USDA, is an area where at least 1/3 of the population lives greater than one mile away from a supermarket (or greater than 10 miles for rural areas). The negative impact of food deserts go from an increase commuting time to not having access to healthy food within your community. Close proximity to supermarkets, convenience stores and shopping malls can make a location irresistible for buyers. A recent study from ATTOM Data found out that vicinity to businesses such as Trader Joe’s, ALDI, and Whole Foods increased properties’ value by an average 52% when contrasted with other zip codes that did not feature comparable food markets.
Restaurants, stores, public parks, sports facilities and any place in which you spend leisure time will absolutely add charm to its surroundings while generating a sense of community among its regular visitors. Such amenities are highly appreciated by potential buyers even when they are not fully aware of the added value that they bring to the table. Nonetheless you should also consider the potential downsides of living close to commercial areas, as these places could be a source of noise pollution.
As you might have figured out by now, there is no magical formula for finding the perfect location and there might not be such thing as a perfect location. It all boils down to a balancing act in which everyone has to determine how much are they willing to give and take.