A good school district can lead to a better shot at the right college and eventually a lucrative career. But did you know that school districts can affect the resale value of your home, the quality of the area, and more?
It’s All About the Districts
According to Realtor.com, one out of five buyers would give up a bedroom or a garage if it meant being in a better school district. The same number of buyers said they would pay 6-10% above their budget for this feature, while one out of ten said they would be willing to go a whopping 20% above their budget!
Take a second to let that sink in. Even if you don’t have children, just being located in a good district could get you up to 20% more for your home than what someone may have originally been willing to pay.
With the current low supply of available resale homes, this means that your beautiful home could go for a premium price should you choose to resell.
But wait! What if the market collapses?! Never fear, dear readers. Properties located in quality districts typically hold their value or can even increase in value in a slower market.
Investing In the Future
A gorgeous dream home means nothing if it isn’t in your ideal location. According to Trulia, almost 33% of buyers would sacrifice more square footage if it meant living in the ideal community.
That ideal location, though, is inextricably linked to the quality of schools. It turns into a bit of a “Which came first, the chicken or the egg?” situation. One thing is for certain: the higher quality the school, the better the area tends to be. And with that quality comes a rise in home value.
The National Bureau of Economic Research found that for every dollar spent in a public schools community, home value can actually rise by $20! That’s an insane level of investment in your local community.
The difference becomes far more obvious when you compare overall home prices in different school districts. A study by Brookings found that in higher-scoring school districts in the nation’s largest 100 metros, home values were $205,000 higher on average than neighborhoods with lower-scoring schools.
Of course, this does mean that you’ll need to be willing to shell out more cash to begin with. While the home value will increase over time, the homes in these quality neighborhoods are already a bit more pricey than the rest.
When you look at the research, it’s hard to argue with the amount of value you could see added to your home as time goes on.
Location, Location, Location
Often you’ll find that the better the school, the better the area is that the school serves. A higher quality school district, for example, is more likely to be in a “safe” neighborhood.
“Parents need to consider how their children will get around in the new neighborhood,” John Wetmore, a “walking” safety expert, urged Public School Review. “Will Mom ‘The Chauffeur’ shuttle the kids back and forth to school every morning and afternoon? Or are there sidewalks and crosswalks that enable children to get safely to school on their own?”
Even if you don’t have kids, the link between good schools and good neighborhoods can’t be ignored. A prime location typically means a larger variety of restaurants, amenities, recreational opportunities, and ease of access to transportation. If you live in a large metro area, like Oklahoma City, it can also mean proximity to downtown.
Of course, if you do have children then you can’t help but consider the quality of education they’ll receive.
Test scores, teacher-to-student ratios, and graduation rates are all ways that you can research what school district is the best for your child. U.S. News also urges home buyers to consider the general reputation of the school as well.
“If everyone speaks highly of a school or trashes it, there may be reasons,” says Geoff Williams, the article’s author.
Make sure you’re considering all factors involved when choosing the right district for your children - after all, you’re planning on spending at least several years in the area, which can have a great impact on your child’s overall education.
Bringing It Home
The moral of the story is that school districts can affect your quality of life and the resale value of your home, regardless of whether you have children who would attend those schools.
Here are a few key points you should keep in mind after reading this post:
Homebuyers are willing to pay more for better school districts - something to keep in mind if you plan on reselling.
Your home value is safer if the home is located in a quality school district.
The better the school, the better the area.
If you have children, quality education can get your child ahead of the curve.
If you have questions about the best school districts you should be buying in, contact our team! We can help you find the perfect home in TimberCrest for you and your family.