Location is one of the many things that home-buyers look at when deciding on a new purchase. “Location, Location, Location!” is one of known mantras of real estate agents, but it also holds value to investor, brokers, and developers. It holds a deeper meaning aside for the location of a home in regard to where it is located in a neighborhood. Here at Invictus Real Estate, LLC we look at the mantra as three separate components of the real estate dynamic. Each ‘Location’ has its own significance, meaning the phrase isn’t simply, “Location¹, Location¹, Location¹” but rather than “Location¹, Location², Location³!”. It is important to consider each of the three locations in your home purchasing deciding to help you determine things like cost and value, as well as lifestyle. Let’s break it down, one location at a time!
This deals with the individual property. It is important for gathering information about the narrow scope of the property. This is where real estates agents start asking questions like, “Has the lot been properly prepared?” and “Does it comply with all local, state, federal codes?”. In Florida, important questions to ask is, “Is it a designated flood plain, or an area that is prone to flooding?” or “Is the home prone to septic, sinkhole, and foundation issues?” All of this is asked before the home is even built! The initial property pricing is grounded in the value of the land at the time of the purchase, construction cost, and secondary costs. Location¹ makes up the greater
percentage of the homes value.
Now let’s widen the scope. We can now look at the location as a neighborhood. We’re now looking at the local community. Things like school districts with good test scores, high graduation rates, and high college entry rates attributed to the value of a home. Properties located
near parks, restaurants, entertainment centers, and grocery stores are seen as having more value than a home that is located further away from these amenities. Neighborhoods that are located near a city’s major transportation routes and that have more than one point of entry are also considered more valuable, since commuting to and from work is a big part of people’s day and traffic convenience is always a plus, however if the location of the property is in a heavy trafficked areas, places like congested roadways, heavily-used through fares, or even airports can reduce the value of a home. Corners in neighborhoods have more traffic so even this plays a role in the value of the home. If the property is scheduled for future development this can lead to major noise issues, similar to the noises you would hear in high traffic areas. Properties with lower value homes but quaint wooded preserves tend to have more value than homes that are next door neighbors with grocery stores or gas stations. Your own personal lifestyle should also be considered. Things to consider are if your neighbors enjoy large parties on the weekends, but you enjoy falling to sleep at nine in the evening, or if the neighborhood is under strict rule of a Homeowner Association Contract, but you plan to renovate and drastically change the appearance of your home. It’s important to think about these things before purchasing a home because of how closely it can affect your own comfort in your own home.
Now we have discussed location and relation to its initial costs, and location as a neighborhood, so the final location we’ll focus on the outlook of the real estate market, or the state and regional market location. This is essentially the property values as it rises and falls base upon the expected growth, or decline, in the region where you plan on purchasing your home. In Florida, you will often find that places like Tampa, Orlando, Miami, and Jacksonville make up some of the best real estate markets, but are they place that you would want to live. Of course, the price ins important, but as we’ve mentioned before, there are many more aspects to consider when buying a home. Things like the unemployment rate, property taxes, crime rates, and new housing development should all play a factor in your decision to buy a home. There’s a chance that you may fall in love with a location only to have it radically change in the future and effect your biggest financial decision.
Buying a home is a huge financial decision and it is important that you find something that you can be happy with. Things like paint color and appliances can be changed, but the home itself can’t be picked up and moved to a different location, so you want to find an area that is not only makes you feel secure about your choice, but that makes you proud to call it your home. We at Invictus Real Estate, LLC would be more than happy to help you find not only the best location for you, but the best home! Contact us for more information, or to speak to one of our experts!