You have most likely heard it mentioned that the school district you are in can have an impact on the value of your home and desirability of your neighborhood. Of course it makes sense that families want to have their children in a good school district, but does this really have an impact on the value of your home? Absolutely, and here’s why:
Schools Tell a Lot About the Area
Many buyers and investors look at the school district to help get a good read on the area. Good school districts tend to be an indicator that it is a good area overall. Good school districts tend to be in locations with higher income levels and lower crime rates. These are the areas that many homeowners want to live in.
To find good school districts try the following:
- Look at the test results
- Look for low teacher to student ratios
- Check the graduation rates
- Check how many graduates go on to complete college
- Talk with the local parents
- Talk to your real estate agent
Buyers are Willing to Pay More
A survey completed by Realtor.com found that there are buyers willing to pay more to purchase a house in a desirable school district. One out of every five buyers were willing to go over their budget by 6% to 10% and one out of ten were willing to go over by 20% to end up in a good school district. There are buyers willing to pay a significant amount of money over their original budget to end up in a good school district.
If you are selling...
Competition Can Drive Up the Price
The school district that you live in can cause a larger amount of buyers to be interested in buying your house. With a limited number of homes in each school district there might be a larger amount of potential buyers interested in your home. Multiple buyers interested in your house can lead to a bidding war, which will help to drive up the sale price of your home.
Millennials are Hitting the Market
Millennials are starting to enter the real estate market as first time home buyers and over the next several years they are projected to take over as the majority of those that are buying. This generation is waiting for longer than ever before to become homeowners, which means as they are looking for a house to buy one of their consideration is their growing family. Homebuyers with children will be considering the school district along with the house itself.
The realtor.com survey mentioned above found that 90.53% of buyers said that school-district boundaries are either “important” or “somewhat important” to their home search. If you are interested in selling a house that is located in a 4 or 5 star school district make sure that you factor this into your asking price. Take advantage of the great school district in your area when marketing your house to help sell it for a higher price.