Balance Location with Value When You’re Home Shopping

Everyone has heard the caveat of finding the right home: location, location, location. Yes, location is a key factor in home-buying. But location is also relative, and some locations don’t provide the value that you and future buyers may want. 

Some locations come with a premium.

First and foremost, when you’re shopping for a new home, keep in mind that some locations come with a premium. If you want to live in the best neighborhood, you’re going to pay more than if you live in an average neighborhood nearby. While you might be willing to make the compromise, it means your home is likely to be overpriced, and you may have trouble selling it in the future. The best neighborhoods also have nowhere to go but down, so think ahead ten or twenty years to see if it’s still going to be the best neighborhood before you decide to buy.

Location is relative.

Location is key, but location is relative. The things that are important to you may not have the same value to the next person to buy the house. For example, if you’ve got kids in elementary school, you’ll want a location with a good school system. If the next buyers have kids in a private school or don’t have kids at all, they may not care about the school system and would be looking at other factors. Try to keep all factors in mind when you’re shopping, and not just the considerations that make it an ideal solution for you.

How to balance location and value.

Be willing to compromise on location for the sake of getting a good value. You shouldn’t move to a bad neighborhood just to save money, but you should also think twice before paying a premium for a location with intangible benefits. Your best bet is to find a good home in a good neighborhood, with a relative location that factors in all considerations; not just the elements that are important to you. That’s how you ensure you’re buying a home with good resale value, and balance location and value when you buy.

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Steve SchraderBachar is a local mortgage planning expert who resides in Iowa and provides service to the clients of his mortgage planning practice across the Midwest.  You can reach Steve at 1-515-289-4381 or 515-360-5197.