One of the most popular phrases in real estate is “location, location, location.”
We all know that where a house is located can have a tremendous amount of influence on what that house is worth. Even an average house in a great neighborhood will command a higher than average price while the same house located in the bad part of town will sell for a below average price.
We also know that finding the perfect house in the perfect neighborhood can be a very difficult goal to achieve. There are many times when buyers are going to have to compromise on some of their “must-haves” in order to find a place that they can call home.
In situations where these types of compromises must be made, the buyers generally fall into one of two categories. Some buyers place a higher value on how the actual house will meet the needs of their family. Other buyers are more concerned with the location and are willing to settle for a lesser house if it is in the right place.
When you are looking to either buy or sell a house, you want to take into account how both the actual house and the location of the house can influence the price that it might command, as well as the value that price represents to your specific situation.
Valuing the House
Depending on the preferences of a particular buyer, you might find that they place a higher priority on the actual house, regardless of the neighborhood it is located in.
These buyers are more concerned with making sure that the specifics of the house are going to be a good fit for the needs of their families. They will be particularly concerned with the number of bedrooms, the number of bathrooms, the total square footage, and the size of the lot.
Buyers who are more interested in the actual house will also be more likely to appreciate custom aspects of the home like a finished basement game room or a great outdoor patio space.
Valuing the Location
The other type of buyer is far more concerned with the location than the actual house. These buyers would happily settle for a lesser house if it means that they can get into a better neighborhood. They place far less emphasis on custom options like a game room or outdoor space.
The features that motivate these types of buyers have nothing to do with the actual house. They are interested in locations that offer their families opportunities like great school districts, close access to popular commercial areas, and lower crime rates.
Deciding What’s Important
There are many different reasons that motivate people to buy and sell homes. Perhaps their family is expanding, so they need a house with more bedrooms just to accommodate everyone. Maybe they are simply tired of making a long commute to work and are desperate to move closer to a particular location, even if that means downsizing.
Each buyer and seller has their own unique backstory that is motivating their decisions. Determining whether the house or the location is the most important thing is a personal decision that is going to have a different answer for everyone.
Whether you are buying or selling a home, it is important to understand how that home stacks up to comparable homes in the same neighborhood, but you also want to consider how it might compare to similar homes in other neighborhoods and how those differences might influence its value.
Comparing different types of homes in different neighborhoods is the best way to evaluate all of your options and decide on what factors are truly the most important in your situation.
Are you looking for the perfect real estate agent to help you buy or sell your home? Contact us today at (877) 330-2773