The Role of Location in Successful Home Buying Decisions
Want a successful home buying decision?
It’s not the house you choose. It’s the location you choose.
Location is everything when it comes to finding your next house.
The wrong neighborhood or city can turn a great home into a living nightmare.
The problem is most buyers get it backwards.
They become emotionally attached to a house and wish they lived in a different location. Smart buyers do the opposite.
They lock in the best location and find the right house.
Problem: Location is the difference between losing money, wasting time and being miserable with your decision.
Solution: Location is also the difference between getting wealthy and experiencing a dramatically better quality of life.
What you’ll discover:
- Location: The most important home buying decision
- 3 Location Factors That Matter Most
- How To Evaluate Neighborhoods Like A Pro
- Location Mistakes That Waste Money and Time
Let’s jump in and explore the top location tips for home buyers.
Location: The Most Important Home Buying Decision
Location is everything.
You can change just about everything else about a house…
Repaint the walls. Replace the cabinets. Update flooring and fixtures. Make it “yours”.
Location is the only thing you can’t change.
That house might have everything you want. Granite countertops, hardwood floors, spacious backyard…
But it also backs up to a busy highway and is in a declining neighborhood. Guess what – that’s your problem for life.
And here’s the thing most home buyers don’t realize…
Quality of the neighborhood is the most important factor (59%) to recent home buyers when choosing where to live.
Factor in price, features and all the rest. The quality of the neighborhood trumps everything else.
Preferred Virginia Beach home buyers who operate with unmatched professionalism and efficiency understand location better than almost anyone. They’ve witnessed and been responsible for hundreds of positive home-buying experiences as a result of location and price decisions.
The most important thing about location is that it impacts both lifestyle and investment value.
Location shapes your day to day quality of life by determining things like commute times, cost of living and general safety and security.
Location also impacts how well your home holds or gains value over time. It’s not 100% but bad location can definitely hurt your home appreciation.
Resale value is not the most important factor in buying a house but it does matter.
Wise home buyers know their location choice will impact them for years so they get it right the first time.
3 Location Factors That Matter Most
New data from the National Association of REALTORS® (NAR) highlights the location factors that matter most to buyers.
Location factors that ranked in the top 5 include:
- Neighborhood quality
- Convenience to friends and family
- Overall home affordability
Let’s discuss why these are the most important location factors.
Neighborhood Quality Comes First
This is big. 59% of buyers say neighborhood quality is their top priority when choosing where to live.
Neighborhood quality is such a big deal because it impacts so many factors…
Like traffic congestion, noise levels, crime rates and more. These are not nice to haves. These are important day to day lifestyle factors.
A quality neighborhood is one with:
- Low crime rates
- Well maintained properties and homes
- Good schools nearby
- Active and engaged residents
Visiting a quality neighborhood has a distinct feeling that you get as soon as you drive into it.
Sidewalks and lawns are well maintained. Homes are in good repair. Neighbors care about their community.
Drive through the projects. It’s obvious.
Drive through one of these quality neighborhoods. You can feel the difference.
Convenience To Friends and Family
Another big stat…
45% of buyers rate being near friends and family as important when choosing a new neighborhood. Huge.
Median home buyers move an average of 20 miles from their previous home.
That’s not a typo. 20 miles.
They want to stay connected to their support network.
Think about it for a second…
If you move too far away from everyone you know you’ll be lonely and isolated. You’ll drive home from work to a beautiful house that doesn’t feel like home because you don’t see the people you care about.
Friends and family are key. Smart buyers prioritize being near them.
This is why 36% of buyers also say overall home affordability is an important location decision factor.
Whole home affordability, not just purchase price, is important. Not only because no one wants to struggle financially but because cost of living can be dramatically different from one neighborhood to the next.
Property taxes, utility costs, homeowners insurance rates and home maintenance expenses all vary based on location.
Buy the cheaper house in a higher cost area and you could end up paying more than if you bought the more expensive house in the less expensive area.
How To Evaluate Neighborhoods Like A Pro
How do you know if a neighborhood is right for you?
Use this proven method.
Drive through at different times. Weekday mornings, afternoons, evenings and weekends. You’ll get a feel for the traffic patterns, noise levels, how the neighbors interact with each other and the overall vibe of the area.
Visit the school districts. Even if you don’t have children in the home the school district is a telltale sign of a quality neighborhood or not. Homes near top rated school districts retain value better, sell faster and for higher prices.
Look at future development plans for the area. New shopping centers and other nearby home friendly development will help your property value over time. But busy new roads and industrial facilities can hurt your investment.
Contact your local planning department. They can tell you what’s approved for the area that you should know about before buying.
Location Mistakes That Cost Buyers Thousands
Here are the 3 biggest location mistakes I see.
Love the house, not the location. Don’t fall in love with the house and ignore red flags in the location. Traffic, crime, falling home values and declining neighborhoods are all things you’ll notice after you move in. And hate.
Not researching neighborhood trends. Some neighborhoods are going up, others are going down. Do your research on things like recent sales prices, days on market, new businesses moving in or out and crime statistics over time. Is the neighborhood improving or declining?
Ignoring your actual lifestyle. Be honest about how you actually live your life. If you hate driving and love walkable areas a suburban neighborhood won’t make you happy. Value quiet and privacy? An urban location will drive you nuts.
The Flexibility Factor
Here’s a stat that surprises most people…
Two out of three buyers would give up their ideal location in exchange for the right house.
Think about that. Location preferences are not set in stone.
But that also means you need to be honest about what you’d compromise on and what you can’t budge on.
Would you rather have an urban location or suburban? Smart buyers know which one but they’ll also consider the other if the right property comes along.
Know your non-negotiables vs preferences before shopping for a new home.
Choosing the Right Location
Ready to make your location decision?
Do this:
Start with your must haves. Safety, commute, school quality. The things you simply cannot live without or settle for less.
Layer on your preferences. Walkability, vibe of the neighborhood, new development.
Visit multiple times at different times of day.
The right place will make you want to move in tomorrow and you’ll be able to see living there for years.
Wrapping It Up
Location is the difference between home buying success or failure.
The right location provides you with better lifestyle, protects your investment value and makes you happy with your home buying decision for years to come.
The wrong location means wasted money, time and headaches.
Don’t forget the top takeaways:
- Neighborhood quality is the most important factor (59%) to home buyers when choosing location.
- Convenience to friends and family is the second most important decision factor (45%)
- Overall affordability matters. Not just purchase price but whole home affordability.
- Most (66%) buyers would trade their ideal location for the right house.
- House is a building. Location is lifestyle.
You’re making a lifestyle decision. Make sure you choose the right one.
Choose wisely.
