Location. Location. Location. You may have discovered the perfect home to buy, but is that house in the perfect neighborhood? The location of the home is almost as important as the home itself. Whether you are looking for a home in a rural, suburban, or urban area, it is worth looking outside the four walls and investigating several factors including commute, public transportation, local shopping, recreation, school districts, walkability, property taxes, and future community developments.
Why Homebuyers Should Consider Their Commute Before Buying
When purchasing a home, people typically budget for mortgage payments, utilities, and upkeep, but often forget how much a commute costs. Commuting is a common practice for many but it’s important to remember the cost of gas, maintenance, and depreciation. For those with long commutes, these costs can add up to thousands of dollars annually. Here's a quick estimate:
- Daily Commute: If you drive 20 miles each way to work, that's 40 miles per day.
- Annual Mileage: Assuming a 5-day workweek and 50 workweeks per year, that's 10,000 miles annually.
- Annual Cost: At 50 cents per mile, this results in a total cost of $5,000 per year.
However, Kris Farwell, Director of Mortgage, says, “If the home is close to public transportation, that can drastically change how much you spend commuting. Check to ensure the transit options are frequent, safe, and reliable.” She goes on to say having public transportation to go to local shopping centers, restaurants, parks, schools, and other amenities helps eliminate the need for a car or for long commuting times. Utilizing public transportation also eliminates parking fees and the stress of driving in rush hour traffic.
Why Local Amenities Matter
Being close to local amenities directly impacts the quality of life, fosters a sense of community, and can ultimately influence a home’s value. If you are conveniently located near grocery stores, restaurants, schools, and parks, you may see an increase in the property’s value over time. “Remember, the home you purchase isn’t just a place to live, it’s an investment,” says Farwell.
For families, proximity to reputable schools and childcare centers is often a top priority. Farwell says, “Even if you don’t have children or school-age children, it’s important to research the quality of the surrounding school districts because it can add significant value to your home.” Ask the realtor whether the school is zoned for quality public schools. Or go the extra mile to see if there are private schools in the area. You may not have children, but if you plan to sell, another potential buyer may desire a good school system. It’s not uncommon for parents to invest in a home that offers convenient access to reputable public or private schools.
Why Consider Property Taxes When Purchasing a Home
When purchasing a home, it's easy to focus solely on the asking price and monthly mortgage payments. However, property taxes are an essential factor to consider, as they can significantly impact your overall cost of homeownership.
Farwell says, “Property taxes are levied by local governments and are typically based on the assessed value of your property. These taxes fund essential services such as public schools, police and fire departments, road maintenance, and other community resources.”
Property tax rates vary widely depending on the location. Homes in areas with higher tax rates can be significantly more expensive over time compared to those in areas with lower rates, even if the homes have similar sale prices. Property tax rates can change, and your home's assessed value can increase, leading to higher taxes. It’s crucial to research the area's tax history and potential for future increases.
By considering property taxes in your home-buying decision, you can ensure a more comprehensive understanding of the long-term costs of homeownership, allowing for better financial planning and fewer surprises down the road.
Consider Future Community Developments
It’s essential to look beyond the property itself and consider the broader context of future community developments. Farwell says, “Future community developments can significantly impact the value of your home. New amenities, such as parks, schools, and shopping centers, can make an area more attractive, potentially increasing property values. Conversely, undesirable developments, like industrial sites, might have the opposite effect.”
By carefully considering these factors, you can ensure that your perfect home is located in a neighborhood that suits your needs and enhances your overall living experience. Remember, the right location can make all the difference in turning a house into a home.
Resources: To find out more about a specific neighborhood or school, check out www.realtor.com.