The three most important words in real estate are location, location, and location. Nothing has a greater impact on the value of a home than its physical location, yet nothing is more beyond the homebuyer’s control. While a buyer can change the color of the house, add a bathroom, or update the kitchen, there is little one can do alone to improve the neighborhood or town. With this in mind, smart homebuyers consider both the features of the house and those of the neighborhood.
A house’s value is affected by many external forces, most of which are beyond the control of individual homeowners. Some of those include:
School quality
Crime rate
Property taxes
Property values of neighboring properties
Traffic
Jobs
Zoning
Proximity to amenities, transportation, and businesses
Demographics
Although buyers cannot control the outside world, they can control where they choose to live. Here are some things buyers can do to select the neighborhood that is right for them and that is also likely to be a good investment:
Schools. The Connecticut Department of Education Web site, www.csde.state.ct.us, has school profiles by district as well as by individual school. Www.reatschools.net also has some good information and features parent reviews.
Crime Issues. The best resource for local crime statistics is the police department. Your real estate agent cannot give you any information about crime or the perception of crime in an area, so it’s best to call the experts. Ask to speak with someone about obtaining crime statistics for a neighborhood and ask him or her to explain what the figures and information mean. For example, if the neighborhood abuts a retail area, the statistics may be skewed to reflect higher crime than occurs in surrounding residences. Two other Web sites, www.familywatchdog.us and www.ct.gov/dps, give information about sex offenders in the area.
Quality of Life Issues. Drive around the neighborhood at peak activity times–during the week around six o’clock in the evenings and on weekends. Pay attention to the condition and types of properties in the immediate vicinity.
· Are the houses well-kept? Lawns maintained? If not, this is a sign that people either don’t have a sense of pride or that the properties may be occupied by renters. Poorly maintained properties are often a sign of a declining area.
· Are kids playing in the street? If so, the people in the neighborhood may feel safe having their children outside.
· Does the property conform to its surroundings? For example, the only single-family house on a street of multifamily houses will have a lower value because of its proximity to investor property, while a similar house on a nearby street of only single-family housing will have a higher value because it conforms to the neighborhood.
· How is the noise level? Are there planes flying overhead? Can you hear shouting, dogs barking, construction, or traffic?
· How is the traffic? Is the neighborhood easily accessible or close to major roads and highways?
You may also want to talk to potential neighbors. If a neighbor is out walking a dog, stop and ask about the area. Neighbors are often willing to disclose information that can’t be found elsewhere, such as revealing that a fellow neighbor plays loud music or that there have been issues with the quality of construction in the area’s homes.
Environmental Issues. The Environmental Protection Agency’s Web site, www.epa.gov, has information on the environmental conditions of an area, such as hazardous waste sites.
Demographics. Visit the US Census Web site at www.quickfacts.census.gov/qfd/index.html or the State of Connecticut publishes town profiles at www.cerc.com/townprofiles.html. Within demographics, look for trends and how the town compares to surrounding towns in population growth, income levels, and percentage of renters versus owners.
Property Taxes and Zoning. Information about local property taxes is available through the town tax assessor. Each town sets its own mil rate for property taxes based on the value of a property. Towns can differ significantly in the taxes they collect based on the mil rate and when the town last performed a revaluation to determine the value of real estate.
For information on new development or zoning changes that may affect the neighborhood under consideration, check with the town zoning board, Chamber of Commerce, or even a local paper. A homebuyer may want to know if there is anything being built or rezoned that could affect the property values of the area, such as farmland being developed into housing, a new retail store, or the conversion of single-family homes along a busy street into commercial property.
Property Values. To compare property values, there are several options. Real estate agents have access to recent sales information and can advise homebuyers about what is selling quickly in the area, the prices, and what the trend for prices in the future is likely to be. Another resource is the town assessor. Many towns now have property databases online where users can search for past sales. If not, the town hall may provide computer access to that information.
With some legwork and observation, homebuyers can select the best neighborhood that suits their lifestyle and a house that is more likely to appreciate in value over time.