The #1 RULE IN REAL ESTATE
If you’ve heard it once, you’ve heard it a million times. One thing is for certain, it’s great advice if you can stick to it! The very best real estate professionals stress this one rule over and over and with good reason, it is ultimately the NUMBER ONE rule when it comes to real estate. "Location, location, location" is the best advice—except for one thing: most people have no idea what it really means.
Location is everything. Forget about how many bedrooms, bathrooms, square feet, or remodeled kitchens. If it’s in the wrong place, everything else is irrelevant.
Before we go any further, we need to first speak the truth about homes, and that is—a home is a depreciable asset. It rots, rusts, and breaks. The true value is in the land. When you are buying a house you are really not buying the house, you are buying the right town land that the house is fixed and built on. Location matters most for one reason alone—you can change the color, the number of the beds or baths, or bulldoze and start from scratch. You can change pretty much anything, but you can’t change the location.
If you follow the useful advice in this blog, I promise you won’t regret your buy. Those that purchase in the right locations not only have a better quality of life, they are also able to resell their homes for more money than those that didn’t purchase in the right location.
When you are in search of your home and are evaluating its location, keep these four simple points in mind:
- Specific Location
Location can be broken down into state, city, village, subdivision, and even its specific block. Since no two pieces of land are identical, specific location becomes that much more important. Factors that can affect plots specific to value include noise and light pollution from cars, businesses, and planes. Proximity to attractions and even window views can change the value of the plot. Ever heard of a million-dollar view? They are talking about the view, nothing to do with the house.
Even the specific location of the lot on the block matters. Usually, middle plots are considered safer and sell for more, and so specific locations within the blocks matter too.
Crime is an easy one, right? I mean, who wants to come out of their mansion having to be strapped? A golden jail, although impressive, is still a jail. Hopefully, you want to live around nice people that are also looking out for you and your best interests. So research online for crime statistics specific to your desired neighborhood.
While we are on the crime topic you also want to research the location for registered sex offenders. Close to schools is a good safe location because sex offenders need to live at a distance from any school.
Schools might be the single most important point in Location. If you are investing for the long haul, invest in a good school district. It doesn’t matter if you have kids or not. Desirability is what matters. When looking for homes, look for the best school systems. Good school districts are usually involved with the community and give children the best of education. Happy children make happy, family-friendly neighborhoods, consequently maintaining property values and desirability.
Transportation has evolved over the last 200 years. The railroad and modern highway systems have been essentials for village growth and hold significant importance in location. Selecting a location where you can quickly use transportation options is highly recommended. People pay more money for convenience. Selecting a location close to town vs the outskirts affects convenience and therefore affects value and price.
Buying the right house in the wrong location
Very few things sadden me more than seeing a home buyer glowing with excitement that has selected the perfect house, in the wrong location. That’s like missing the forest for the trees.
Now I know the kitchen and baths sell houses, but if you miss the location, eventually, you will be disappointed. I often have to be the bearer of bad news when I remind the potential buyer that their “perfect home” is sitting in a flood plain… or backs up to a garbage disposal facility, or has a neighbor who seems to have a junkyard of used appliances and cars.
So, on your next home search, before even taking a look at the house, take a look around and whisper to yourself, “Location, location, location. Do I really want to live in this location?”
The location should be your first decision. The structure should be second.
Posted by Rafael Velasco on