The Impact of a School District on Real Estate
If you are a parent you understand the importance of a school district. Schools differ greatly from one school district to the next and parents that want their children in the best schools take action.
But, are people really willing to base their real estate search around the school district they are looking for?
Stats prove they do.
Realtor.com conducted a survey in 2013 that found an astounding 91 percent of homebuyers took the school district into consideration during their home search.
School districts are important. There are extreme stories of people purchasing homes sight unseen strictly because it lies in the school zone they desire. While, not all buyers go to this extreme, the majority are concerned about schools.
Buyers Are Willing to Make Sacrifices
Buyers looking to live within a certain school district are willing to go to great lengths to secure a home in the neighborhood they desire. One out of five buyers would actually go as far as to increase their budget six to ten percent to wind up in the district they desire. Five percent of buyers would actually go so far as to pay 20 percent over their budget.
Chances are those buyers who are unwilling to go over their budget are willing to make other concessions. One in three buyers who desire a specific school district are willing to purchase a smaller house and 20 percent of buyers would sacrifice on the number of bedrooms.
Is it the Chicken or the Egg?
The numbers prove that houses in top school districts sell for more money. However, the statistics aren’t as clear about what the cause is for this.
Some people believe that the good school districts are the reason that the houses are able to sell for more, thus bringing in more affluent homeowners. However, the other side believes that the schools are good because the houses cost more only allowing the more affluent homeowners to move into the area.
In the end the argument doesn’t really matter.
Either way, homes within good school districts bring in higher prices than those with lower rated schools. This leads to a trickle-down affect. Good schools lead to higher home prices. More affluent buyers purchase the homes, which helps to make the community as a whole more desirable.
In the end it is proven that good schools are a great benefit to a community while also helping to increase the market value of homes in the area. This is a benefit for all homeowners, whether they have children in the school or not.
If you are having a hard time locating a house that you can afford within the school district you desire you might need to join the large percentage of buyers that either increase their budget or lower there expectations on what their house will include. Doing so will help you be able to find a house in your sought after school district.