In our last post we took a look at some events and conditions that negatively impact home values. As promised, this time we’ll expose conditions that have a positive impact on value and some of this may surprise you.
The Appeal of Graveyards
A few years ago, a large real estate news site published the results of a study that surprised many in the industry. People actually like living near a cemetery.
In fact, the study finds that, although homes within 50 feet of a cemetery take longer to sell, when they do sell, they bring in more money than homes further away from the cemetery.
School District
No surprise here; the effects of a good school district on nearby home values are well documented, and this is true nationwide.
In Florida, for instance, homes in what the state calls an “A” district are worth $50,000 more than comparable homes in districts with lower ratings. There’s no dollar amount on extra value placed on homes in Washington State’s Bellevue School District – the highest rated in the state. Studies conducted there claim that homes in that school district are worth, on average, 15 percent more than comparable homes in other school districts.
The National Association of REALTORS® did their study of homebuyers, asking if they were willing to pay more for a home in a good school district. Over half of them said yes.
Large Retailers
Just the mention of the possibility of a Walmart Super Store moving into a neighborhood is enough to send homeowners scrambling for their real estate agent’s phone number. But, should they?
A joint study from Brigham Young University and the University of Chicago found that a Walmart store in a neighborhood causes home value to increase up to 3 percent if you live within one-half mile of the retailer. If you live a mile away, plan on your home’s value to increase by up to 2 percent.
The story is almost the same when a Whole Foods Market moves in. This retailer deliberately seeks somewhat rundown neighborhoods in which to build. From there, gentrification sets in, so home values naturally rise. So, a Whole Foods Market moving into a neighborhood can be said to have an indirect impact on home values.
Finally, a Duke University study finds that homes within a 1 to 5 mile radius of a shopping mall increase in value.
From homes located near rail systems to those with quick access to freeways, there are many aspects to the “location, location, location” mantra that may prove surprising to some, but because they impact home values, they are all well worth knowing about.
