By: Phonicia Palmer

Read to find out why they say ‘location, location, location’ when asked what’s one thing to look for in a real estate property!

“You can upgrade your house, but you can’t upgrade your location.” Sounds familiar, right?

When you’re on the hunt for your dream house, almost every real estate agent will tell you that location is THE most important consideration.

They will go to the point of saying that even a beat-up house in need of repairs will work but not a poor location.

Because you can throw in some bucks to improve your house, but the location stays the same.

Or you can also move your home elsewhere (a mobile home, for example), but the location for a land property is static!

So do you wonder what essentially makes location such a crucial thing in real estate (apart from the fact that it’s not portable or upgradable)?

Read below to find out…

Ready to take a look at five factors that make the location a feature in real estate with the highest value?

5 Factors that Give Location Its Importance

Alright, let’s dive in!

1. Schools Around A Property

Schools play an important role in appreciating the value of homes that lie in their vicinity.

If a house is situated close to a school, it will automatically be valued higher than other similar houses away from the school.

Because there will be more demand for it among homebuyers with school-going children.

And, consequently, the better the school’s ranking, the more valuable the properties will be.

You may ask, should one still consider nearby schools if one has no children?

Yes, even then, a buyer should consider the school district for the property they’re interested in because it will help you resell the property at a much better price.

So, the presence of schools complements the value of the location they are in!

What’s next?

2. Availability of Transportation

Transportation is a necessity for most people, whatever social stratum they come from – working-class, middle-class, upper-class, or elites.

They need it for their regular commute.

Since not everyone owns a car or knows how to drive, public transportation has a very high demand.

Sometimes people having their own conveyance prefer local buses or metro in order to economize.

And, if not adults, underage teens still take a subway for commuting anyway (unless they’re allowed to drive).

All in all, easy availability of transportation is a genuine necessity for most people.

And, therefore, houses that sit close to commute stations and bus stops have a premium value given the desirability of their location.

3. Crime rate and security.

Nobody wants to live in a locality where there is rampant crime…

You would definitely want to steer clear of any location that is known for gang wars, robberies, mugging incidents, or worse, sexual violence. 

Particularly, if you’ve got a family. Isn’t it?

So, since homebuyers avoid locations with criminal activities like the plague their home values stick to the lowest numbers as a consequence.

On the other hand, properties that rest in peaceful and secure areas will automatically sell for top dollar.

Simply because there’s a strong demand for them and everyone wants to move there…

4. Local Area and Amenities

Most people want to have their home in a location where they can easily access basic amenities like food, groceries, and even entertainment.

Places far away from the central town, somewhere on the outskirts of the city usually have low house prices.

That’s because they offer nothing to the potential homeowner except for the house itself.

You’ll have to travel long miles to get food, clothing, medical assistance, etc. And so, the rates will be low.

On the contrary, a real estate location with everything within a 10-15 minute drive or walking distance will go for a fairly good price.

Again because the location has high buyer desirability – and everyone wants to live there (apart from the countryfolk!)

5. Future Appreciation Potential

Finally, the performance of the housing sector largely depends on government policies and future development programs by private firms.

And, the success of those projects will mean the success of the real estate investor.

So, if there are lots of projects in the pipeline for an area chances are the real estate in that market will flourish.

Because people will want a piece in the value of that location after it elevates in the future.

So, seeing the future potential the present buyer will be willing to pay more and the prices will rise.

And, there goes the fifth factor why location matters a great deal in real estate! 

The Final Word

So, what do you take away from the article?

That location is the ONE factor you should be watching out for when searching for a house.

Whether it’s for an investment purpose or a residence.

Much later come in other factors like the bedrooms, bathrooms, kitchen and everything else.

Once you are able to secure a house in a perfect location (considering the above points) you can always give it the look you want it to have.

That’s what they mean when they say, “you can upgrade your house but……”