Real Estate is About Three Things: Location, Location, Location

| July 5, 2011 | 0 Comments More
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Speculators, real estate professionals, and buyers alike have long agreed that the decisive factor in the value of a piece of property is its location. Take two identical homes on two identical plots of land; one is located in San Francisco, while the other is located in rural Idaho. The San Francisco home will be worth several times the value of the Idaho abode.

An even wider divide exists between real estate values in the world?s most desirable locations, such as Manhattan and London, and cities such as Detroit which, due to many location factors, is among the least desirable places. While Manhattan housing prices are some of the most expensive anywhere with small condominiums valued in the millions, family-sized homes in Detroit have recently sold for as little as $1,000.

What kinds of location-related criteria create such a severe discrepancy? Factors such as:

  • Proximity to shopping, jobs, entertainment and other conveniences
  • The economic vitality of the location
  • Excellence of public services such as libraries and fire departments
  • A low crime rate and an adequately staffed police force
  • Well maintained parks and neighborhoods
  • A well-respected school system
  • Comparatively low taxes

These factors translate into property values that are higher in urban locations, but only if the city in question has a stable economy, reflects the pride of its community in the maintenance of parks and neighborhoods, and has vital commercial and business districts. A high-priced city such as London meets these criteria, while a city like Detroit does not. Detroit?s economy, closely tied to the troubled auto industry, is unstable. Job opportunities are limited. Some neighborhoods are abandoned or in disrepair. Thus, its real estate values are at rock bottom.

Many states, such as Pennsylvania , New Jersey, Maryland, Virginia and Washington, DC offer several good locations. Doing some advance research into the various options will pay off. When you buy a house in Philadelphia, for example, you are investing in an urban property close to shopping and other amenities where the diverse economy is stable. Should you want to sell your house fast, you will find that it has maintained or increased its value and represents a desirable acquisition for home buyers in Philadelphia.

Even in an ailing economy, when real estate sales are slow and many  chances are that there will be a buyer for your well-located property. Real estate investors seek out the best buys with the highest profit potential, and if you find yourself in the position of needing to sell your house for cash, a great Philadelphia location will attract those investors who buy houses in Pennsylvania.

Home buyers who do their research and understand the importance of location are those who will get the best value for their money, be able to resell the property quickly, and best of all, enjoy the quality of life that comes with a great location.

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Category: Blog, Home Buyers in Philadelphia

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