Don’t Forget School Districts When Home Shopping
Everyone knows the most enjoyable part of buying a home is house hunting (we even enjoy watching other people search for their homes!). It’s fun to explore different neighborhoods and settings while planning your future.
When looking at different homes, there are many things to consider, such as the quality of construction, whether the home fits your lifestyle, the kitchen, and the backyard.
But there’s another important factor that sometimes gets overlooked, particularly in competitive housing markets: the home’s school district.
Expect to pay more for homes in good school districts
Location matters, and many families will pay higher money for homes in highly-rated school districts. This means a similar home could be priced differently within a small geographic area (even just a couple blocks away).
If you have children, or are planning to in the future, carefully research a prospective home’s school district. Should you find out that a school district doesn’t meet your expectations, it may be worth considering a home in another district — but be prepared for a different home quality at similar prices.
On the other hand, if you don’t have school-age children or aren’t planning on it, you may be able to find a nicer home for a similar price in a neighborhood with lower-rated schools.
A good school district can help protect home value
While we’re currently in a period of rising home prices, this typically doesn’t last forever. In fact, this 2006 chart documents many periods of rising and declining home prices over the last century.
Because there is almost always high demand for homes in good school districts, purchasing a home in one of these areas can provide some protection of your home value should an economic downturn occur.
You can promote the school district when it comes time to sell
Home prices are quickly rising across most of the US, and many economists describe the current housing market as having high buyer demand combined with low housing availability, making this a sellers market.
When it comes time to sell your home, owning a home in a good school district can make your house much easier to sell. In a hot housing market, it’s common to receive offers above your listing price.
Your home’s school district offers benefits and tradeoffs
Purchasing a home in a highly rated school district can provide many benefits to your family, including a typically lower-risk home investment. On the other hand, you may not receive the same value in the home itself.
This makes it necessary to think about your current family situation, future plans, and the school district when shopping for homes. If you have questions about this subject, or are interested in a mortgage, contact one of Open Mortgage’s friendly loan originators.