Real Estate Values & Local School Districts: What Do You Need to Know?
Updated: Mar 9, 2020
Yes, it's true. Areas with higher tax bases and real estate values tend to have higher rated schools because the schools receive more local money and support.
Does this matter when looking to buy a house? Even if you aren't considering having kids?
Good question! Here is what you should know.
Should School Districts Matter to Me?
According to an article on Realor.com, "The domestic home-buying population also clearly values the right school. A 2013 realtor.com® survey of nearly 1,000 prospective home buyers showed that 91 percent said school boundaries were important in their search."
In my experience, and in the local Metro Detroit area, I've seen buyers both choose school districts as a priority and have had others who saw no value at all. Here are some things to consider, on both sides of the coin.
Pros to Buying in an Area With Highly Rated Schools
Overall these neighborhoods are typically more desirable areas and have less issues with resale. They also have a wide range of people that will buy in the future because you aren't excluding future buyers who have or want kids. According to Kapre.com they also tend to hold their value in down markets!
Pros to Buying in a Developing School District.
Since values are less, you can buy more home! Maybe you need a certain amount of square footage and or room this can be a good option then. I
f you are on a limited budget then also this can still be more advantageous than renting in order to gain equity and wealth. Some investors like these areas long term because the opportunity for growth is there. Also, with school of choice in some areas you can live in one city and go to school in another.
Overall you have to decide based on your personal situation. What is best for you?
If you aren't sure consult a good real estate agent, lender and financial advisor and come up with a plan!
Have more questions? You Better Call B!