If you are looking to sell your home soon, one of the most important things you’ll want to know is how much your home is worth. Having a good idea about the value of your home will allow you to know if now is a good time to sell or refinance. It will also help to know how much money you could get from your home to combat financial hardships or to make home improvements that add value. While many homeowners start looking at home value from the point of view of the house itself, they may not consider how important the connection is between home values and school districts. But your proximity to school districts can also significantly impact your home’s worth. Here’s a look at how school districts impact the value of your home.
Good School Districts Means Higher Home Values
You can make many improvements to your home to increase its value. But one thing that affects its value that you can’t control is how well local school districts perform. If you reside in an area where schools get rankings of nine or above, you can rest assured that you are living in an area that will be sought after by home buyers with school-aged children who want great public schools. These areas attract home buyers who may be willing to pay upwards of ten percent over asking to reside in the school district alone. In addition, higher-performing school districts tend to have outstanding leadership, excellent test scores, and high expectations, leading to more significant local community funding.
Potential buyers in these areas can expect homes to be much higher than those nearby that aren’t in the school district. But this isn’t a deterrent. Homeowners with school-aged children are willing to pay the extra costs for a home in a good school district to ensure their children have access to quality education. In most cases, some of these home buyers would have considered investing in private schools in the local area. So, finding a great public school in the area frees up resources and allows them to spend more on an expensive house in a good school district.
Excellent public schools aren’t the only schools that may get a lot of interest from buyers. If you live in a home that is very close to a great private school, this could also drive up the value of your home.
Selling a Home in a Good School District May Garner More Interest
If you own a home in a high-performing school district, you can expect more attention than homes in neighborhoods that aren’t near a good school district. The buyer pool may not only be parents with children, either. Many families that don’t have children are also drawn to neighborhoods with high-ranking school districts because the housing values and the quality of life may be better in some cases. These neighborhoods also tend to be safer than most other neighborhoods. But when selling your home, you must be careful how you describe the school districts in your listing to avoid discrimination. Listing the school may be all you need to do to lure the homebuyers. The school’s reputation will do the rest of the selling for you.
More Interest Could Yield Sales Above Asking Price
It may be cliche, but location is everything. This couldn’t be a more accurate statement regarding homes located near great school districts. For some home buyers who can buy a similar house outside of a school district of choice, they’d rather increase their downpayment rather than decide to go a few miles outside of the school district. Many parents care about the quality of education that their children receive. Therefore, having access to great schools has a significant impact on buying. So, if you sell your home, you may get much more than the asking price if you live near a sought-after school district. Recent data from the National Association of Realtors points out that 26 percent of recent homebuyers chose their current neighborhood based on the school district.
Sometimes Living in a Good School District May Not Be So Good
While there are some great things about owning a home in a great school district, you may not always benefit from competitive buyers or sales above the asking price. Unfortunately, there is a dark side to living in a good school district. Sometimes, potential home buyers don’t like homes near great school districts. One reason is that homes can cost $50,000 to several hundred thousand more than a house in the same area that is not located within the school district.
Another reason some homebuyers may shy away from homes in great school districts is that the property taxes may be higher. In some cases, homeowners don’t benefit from their children attending the local public school because their children attend private schools or they don’t have children at all. Potential homeowners in these types of predicaments may decide that moving a few miles away to an equally nice neighborhood is a better option. But as a home seller, you may not have fear the dark side of living near good schools. Rest assured, plenty of home buyers will have a strong interest in the property and purchase mainly for the school district.
Not-So-Good School Districts May Have a Negative Impact on Property Values
You’ve seen the good and the bad side of living near a good school district. Now, here is the ugly side of living near a low-performance school district. Just as high-performing school districts bring up home values, low-performing ones can lower the value of homes. Since students must attend the schools in their school district, many parents either choose to put their children in private schools or decide not to move to the area. So, if you live in a neighborhood with less than stellar schools, you probably won’t see many buyers with children interested in purchasing your home. On the bright side, you may have some success with those who are retirees, single, or looking for homes that are much more affordable than those in high-performing school districts.
With so much good that can come from living in a neighborhood with an excellent school district, it is a good idea to include this information in your home listing. You don’t have to go overboard, and you don’t have to make this information the focal point. But as with all of the other unique features of your home, mentioning a high-performing school in your listing will bring out many potential home buyers, particularly those with school-aged children.
References
https://newsilver.com/the-lender/do-schools-affect-property-values/
https://www.newhomesource.com/learn/school-district-ratings-affect-home-value/
https://www.raleighrealtyhomes.com/blog/how-schools-impact-home-values.html
https://www.homelight.com/blog/school-district-impact-on-property-values/
https://journals.sagepub.com/doi/abs/10.1177/0739456X16654546?journalCode=jpea
