The price of the average home in the United States is around $190,000. Of course, that number can be much higher or much lower in certain areas based on a variety of factors.
There are many things that impact the value of your home–some in your control, some not in your control. For instance, updating the appliances and hardware can increase a home’s value. But factors like lot size and median neighborhood income are also influential.
This is why a home in a safe neighborhood is often worth more than a home in a high crime area. Let’s take a closer look at how your neighborhood impacts your home’s value.
Attracting the Best Buyers
In economics, the price of any item is determined by supply and demand. Houses in safe neighborhoods, then, are often worth more money because these neighborhoods are in high demand.
In fact, it’s almost difficult to overestimate the importance of neighborhood on a home’s value. Surveys indicate that many homebuyers value the neighborhood more than the home itself. In other words, they would rather pay more for a smaller or older house in a good neighborhood than for a spacious house in a less safe neighborhood.
Furthermore, buyers who value safe neighborhoods are likely to possess other characteristics that contribute to rising home values. These include high wages and interest in caring for an maintaining the property. Bringing in high-quality buyers will attract other buyers to follow them.
Quality of Life
Unsafe neighborhood have a detrimental impact on the quality of life of folks who live there. For instance, people who live in these neighborhoods don’t usually go out at night as much.
This means that they don’t feel as comfortable going out to walk the dog or go to the bar. Folks who can afford it prefer to live in neighborhoods that provide a better community for them and their families.
The Ripple Effect
Another benefit of low crime neighborhoods is that these neighborhoods tend to have other features that homebuyers value. For instance, low crime neighborhoods often have great school districts, which is important to buyers with children. They also tend to be close to shopping, restaurants, and activities, which can make these neighborhoods desirable.
Creating a Neighborhood
Buyers also like to buy in neighborhoods where other folks who are like them live. So, if a neighborhood has features that are attractive to a family with school-aged children, it will probably attract many of these families. This will give these families the opportunities to find playmates for their children and a network of supportive neighbors.
Learn More About How a Safe Neighborhood Can Impact Property Values
With these factors in mind, you can have a better idea of how the neighborhood surrounding your home might affect its value. These are important factors to consider if you are thinking about selling your home.
Looking to learn more about your property values? Check out our maximum value home audit to learn how much your property can be worth.
When you’re looking to sell your home, updating your kitchen and bathroom is an easy way to overhaul the look of the house.
Author, Speaker and Broker at Powerhouse Real Estate.