Does Location Really Matter?

For years, the golden rule of real estate was location, location, location. More recently, that saying has taken on a different meaning. Due to the current sellers’ market, location is not as important, while the features of the home and neighborhood are the true selling points. When the market does shift back to a buyers’ market, location will once again be important, but until then there are certain things that contribute more to the value of a home.

Condition Condition Condition

The condition of the home is essential to buyers, many of whom want a turn-key residence that is perfect for a family. Having a property with plenty of room to expand and grow a family is what most buyers are searching for in the Greater Boston area. They want to purchase a home and not have to put too much money into it afterwards, which is why condition in today’s market is so essential.

Neighborhood

Millennial buyers want the convenience of urban living in the suburbs, but they still want the white picket fence, big yard with a swing set, and a nice patio for grilling. They want to be within reasonable walking distance to their local coffee shop, grocery store and public transportation. Being able to walk their kids to school and to a local playground are two important factors to current house hunters.

School District

While many buyers you encounter might not yet have children, the school district your home is in will still play a huge factor in whether they make an offer. Young buyers are buying homes because they are setting up their future, which could include children. The school systems in the Greater Boston area are some of the best in the country, which is why housing costs continue to rise in certain towns, and inventory remains low.

Construction

Construction can be viewed as an inconvenience, a neighborhood eyesore that can cause constant noise and negatively impact traffic. However, others see it as growth potential for the neighborhood, and can deal with the short-term hassle if it benefits to the neighborhood and community, at large, in the long term. Investing in a property that can gain value over the course of time will pay off in the long run.

What You Don’t Want

One thing that buyers never want to invest in is a home that is not quite up to code; it may save a few dollars at the outset but will ultimately cost more than it’s worth. Houses with very constricting zoning restrictions, high tension wires, easements or non-conforming lots can scare away buyers who are looking for a fixer-upper with expansion potential. Certain towns make it
difficult to obtain permits for certain structures, so if you’re looking to invest in a remodel, make sure your plans are iron-clad prior to making your investment

In the end, the old verbiage about “location, location, location” will come back into fashion once the market shifts from a seller’s market back to the buyer’s market, where a house in a better location will sell quicker and higher and be a better real estate investment. For now – a home that checks off all the other boxes will suit young buyers just fine – and still maintain good resale value. When in doubt – ask your broker for help. He or she can provide you with critical intel about an up-and-coming neighborhood or a home with great potential – ensuring this all-important transaction is the right one.