Renowned filmmaker Ridley Scott once said that location was of as much integral importance in making a film as the actors. In other words, location could be considered a character just as much as the human characters. This is a good quote to keep in mind when you’re looking for a good home location.
Here are 5 factors you must consider when looking for a good home location:
- Locational Exclusivity
- Potential for Exclusivity
- Neighborhood Social Amenities
- Local Job Market
- The Floatability Factor (Yes, as in, “float on water,” – more on that later)
Locational Exclusivity
Always think of, “location, location, location,” as another term relative to, “value, value, value.”
When looking for a good home location, you must always consider factors like home value, enhancing value, and increasing value.
A good home location is always tied to the relative market value of the home. Or, the perspective of the home buyer.
And one of the main barometers of value is location.
Or, rather the exclusivity of location. The next time you go home buying think about the, “red velvet rope,” aspect of the experience.
Highly developed, technologically advanced, and fashionably aesthetic metropolises have finite land spaces for residential occupation.
Homes in these locations are prized because of their exclusivity.
You’ll pay much more affordable home prices in small towns with relatively limited or growing job markets, medical facilities, and social activities.
Think about it. Would you rather own a home in San Francisco or Sheboygan, Wisconsin?
This isn’t derogatory commentary on Sheboygan. Home buyers aren’t rushing to Boise, Idaho yet either.
Most people think of large cities as a good home location when they want to buy a home.
Whether that is right or wrong is another issue.
The COVID-19 crisis is changing everyday life and the rules of business.
Mandatory lockdowns and social distancing have caused mortgage applications to decline by over 24% in 2020.
Wait a few years and gauge the real estate market post-COVID-19. Home prices could lower significantly. Even in metropolitan locations.
Potential for Exclusivity
The only better market to look for a good home location than exclusive real estate markets are those with the potential for high-value exclusivity in the future.
Forget what I just said about Boise, Idaho.
If you buy a house there now, you might find yourself living in the city with the hottest housing market a decade from now.
It pays to keep in mind that a good home location, relative to your preferences and needs, may not emerge for years.
Strategically compromise your location preferences now and you may watch your home’s value increase in a decade.
Over 28,000 San Franciscans left the city in early 2019 due to high rent and mortgage prices. Many began searching for good home location in nearby locales.
You can buy a house in these 10 cities for less than $200,000 right now and potentially see its value grow within a few years:
- McAllen-Edinburg-Mission, Texas
- Chattanooga, Tennessee
- Columbia, South Carolina
- Rochester, New York
- Winston-Salem, North Carolina
- Memphis, Tennessee
- Knoxville, Tennessee
- Cleveland, Ohio
- Allentown-Bethlehem-Easton Metro, Pennsylvania.
- Akron, Ohio
Neighborhood Social Amenities
“Location, location, location,” is a phrase that is ripe for interpretation.
For example, what constitutes a good home location, versus a bad one?
For example, you don’t want to buy a home near:
- High crime areas
- Commercial buildings
- Factories
- Traffic intersections and highways
- Railroads
- Airports
Look for neighborhoods with good schools and neighbors with children. Those are homeowners who have invested for safety and social value as much as ROI on home value.
Homeowner associations has its fans and critics. However, most are designed to help members maintain and increase the market value of their homes.
Make sure that any neighborhood you look at has advanced and professionally competent medical facilities nearby.
Are there local, natural or man-made aesthetic beauty like parks, lakes, ocean views, and so on?
Consider every social amenity, again relative to your needs, that will make your choice a good home location.
Local Job Market
What is the point of finding a good home location if there is no local and thriving job market?
Local job markets should be diverse and plentiful. Research which employers, businesses, and corporations are nearby before buying a home.
Think about your commute time as well. Long commute times to work can negate any benefit you gain from a good home location.
Floatability When Considering a Good Home Location
Will your home float?
It isn’t a macabre joke. You need to ask yourself that question when home searching.
About 3.8 million homes are located in so-called floodplain states.
These are states and residential areas that are located near the Mississippi river, the Gulf coast states, and areas prone to hurricane landfall each year.
Homes located in floodplain states are more prone to experience property damaging flooding relative to other states.
Most homeowners don’t know and don’t ask if a potential home is in a flood prone area.
Ignoring this reality can be costly as well. Fraudulent real estate agents and home sellers inflate the value of properties located in floodplain states.
Research, Research, Research
Unless you’re inclined to engage in heavy research, your best option to buy into a good home location is to probably get an agent.
About 94% of Americans buy a home through a real estate agent.
Read More
What Can Coronavirus Bring To Real Estate?
13% OF HOMES ARE SOLD VIA DIRECT ADS – DON’T USE THESE PHRASES
CAN A HOME BUYER MAKE MULTIPLE OFFERS?
“IF YOU’RE ASKING, YOU CAN’T AFFORD IT!” WHERE HOME OWNERSHIP IS CHEAPER THAN RENTING
BUYING A HOME – 10 POINTS TO CONSIDER
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.