The location of a house is no less important in real estate than the market economy or one’s own bank balance. In an area where current businesses are growing and new businesses are moving in and establishing offices, house sales will increase, prices will continue to rise and there will be oversupply of demand where a typical house attract multiple bids. All these happen even if the economy in general is in a depressed state. And if the economy is real good, that will send the real estate market into orbit.
On the flip side, when the economy is doing well, housing market in a poor location may fail the property owners to a considerable level. There may be no demand for existing homes, and people in the market will hesitate to buy even if the houses are affordable. If in a locality businesses are closing down and moving out of the area, the value of properties around will become lethal. In essence, location is one of the main catalyst for a house to gain the importance it deserves.
Location is not just about the physical placement of the property on an area map. It is also related to commuting patterns, proximity to schools, offices, tax liability as well as access to public places. There may be single or multiple pockets in a town that is considered to be a favorable location because it is ideally situated and conveniently located for dwellers around. There may also be pockets experiencing unfavorable conditions as well, those localities that prospects don’t want to look at despite having enough money to spend. The reputation of a locality always colors the area’s real estate marketplace, and it is a time factor that remains unchanged for long.
Consider, for example, an upscale neighborhood with modern facilities, good schools and transportation within reach. Who wouldn’t want to live in such a pristine place? This type of neighborhood can be found in any urban or suburb region around the country. At one time, a neighborhood like that may not have got the prestigious tag it has been associated with now. But overtime, it may have become the most desirable area due to its reputation that grew gradually. And then it became high priority for everybody looking for a house, zooming up the price until it was no more affordable to common men and women. On the other hand, sometimes homeowners or prospect buyers think that a particular location is stable when in fact it may not be due to certain reasons. A gradual change in reputation may be on the card, but the question always remains – when will that change happen?
You will see that nothing is permanent when it comes to real estate. When the cost of commuting goes up, people prefer to stay closer to their workplace in order to save money in gas. They want to spend more time with their family during free hours than traveling back and forth. As a result, more urban areas with businesses have become favorable compared to outlying suburbs. The reasons again is obviously the location.
Location of a real estate property can make or break a deal. Only you as a purchaser of the property can make the evaluation of whether a property is in a desirable location or not based on your requirements. Try to judge the locality but its look, amenities, distance, desirability and demographics. Visit the area at night and feel the surroundings by taking a walk down the street. Talk with people – neighbors, real estate agents, bankers, sellers and educators about it. Watch newspapers for new development in the area, proposed business moves, and of course, schools and colleges. All of the information that you gather this way will help you determine the type of location the house is in. Obviously, this finding is going to be important if you are spending the rest of your life in that property.