Deciding where to buy a home can be one of the most difficult decisions you can make. If you have a built-in reason to choose one area over another (it's close to your work; it's where you grew up and you're emotionally tied to it; there's a rumor about a professional football team coming soon), it can be easier. But for the rest of us, a multitude of factors can make the choice challenging at best.
So how do you know where to buy if you are value minded? Here are a couple schools of thought.
Go where the rich go.
A recent story in CNN Money noted that "The United States is the top destination for those worth more than $30 million buying residential property valued at a million or more, according to a report from Wealth-X and Sotheby's International Reality." New York is the leading city worldwide for wealthy residences, the story said. Los Angeles and San Francisco are also in the top five. Within those cities, individual neighborhoods cater to wealthy buyers. So what do you do if you can't afford those premium neighborhoods? You live near by. "There's a neighborhood in Southern California called Coto de Caza that was popularized on Real Housewives of Orange County and is one of the most desirable places to live in the states," said real estate advisor Sara David. "Several years ago, a developer came in and built a community of substantially smaller but still very attractive homes just outside the gates and marketed the property as ‘Coto de Caza adjacent.' It was a huge draw for buyers, who have seen their home values increase dramatically over the years. It's not a unique situation. There is a long history of ‘adjacent' neighborhoods gaining in value simply because of what they are next to."
Go where Starbucks goes.
"Confirmation that Starbucks is boosting more than your personal productivity," said Apartment Therapy. "Higher home prices actually follow Starbucks, rather than the other way around."
Yes, call it "The Starbucks effect," said TIME magazine. "Proximity to a local coffee shop has a very real, and positive, effect on home values," with data over 17 years showing that "homes adjacent to the local Starbucks almost doubled in value, up by 96%. Those further out appreciated by only 65% over the same period."
Go where the schools are.
It's an obvious choice to buy in a neighborhood with good schools for homebuyers that have a family or are planning for one. In fact, some buyers are willing to forgo other amenities to be in a top school district. "Homebuyers are willing to pay more and give up certain home features for a home located in their district of choice," said AOL. "They are especially willing to give up accessibility to shopping and nearby parks and trails among other amenities, to reside within school district boundaries of choice." But being near acclaimed schools is important even for couples without children.
"Living near a high-scoring school can increase your home's value by over $200,000, according to the Brookings Institution," said AOL. "That's not chump change. There are plenty of advantages that come with proximity to a school, including increased police protection, personal use of school facilities and living in a ‘Drug-Free School Zone.' "Even those couples who don't have kids yet but are planning to are worried about the quality of schools in the neighborhoods where they are considering buying," said Stacie Staub of Live Urban Real Estate. "High-scoring or popular schools do raise property values and demand for homes, no question."
If you are in the market for a new house and would like information on homes for sale, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.
Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Lang Premier Properties. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.