Why Are Good Schools Important to Homebuyers?

If you are in the market for a new home, there are many factors to consider. One of the more important factors, though sometimes overlooked, is the quality of the school district where the home is located. Whether you have children or not, there are plenty of good reasons to strongly consider the quality of the neighborhood schools.

Property Value

Even if you don't plan to have children, you should consider the quality of the school district you are in. Why? Most people want to live in a good school district, which means demand for your home will be high. High demand means your home value will likely see a healthy appreciation.

In 2014, Realtor.com's Back To School Survey found that the majority of homebuyers said school boundaries has an impact on their home purchasing decision. They also found that some homebuyers were willing to pay as much as 10 percent above budget to live in their desired school district.

Weather The Next Financial Storm Better

Economic downturns are just a fact of life. It's not if they will happen, but when they will happen. The good news is that you are more likely to get through it with less financial damage if you own a home in a good school district. In 2011, data analysis company Location, Inc conducted a study on home foreclosures in five metro areas (Jacksonville, Fl; Atlanta, Ga; Toledo, Oh; Stockton, Ca.; and Seattle, Wa). They found that well regarded school districts suffered fewer foreclosures. They also maintained higher home sale prices.

Better Liquidity

One of the few potential downsides to homeownership is that it ties you to a location until you are able to sell your home (unless you have the ability and tolerance to rent it out). Even if you plan on being in your new home for a very long time, it's always nice to know that if something comes up and you want (or need) to move, you are able to do it with relative ease. Since you will be living in a highly desirable neighborhood with good schools, the higher demand means it should take you less time to sell your home.

The quality of the school district may not be the overriding factor in your home-buying decision, but as you can see, it can be important for more reasons than most people realize. Granted, homes in quality school districts tend to be a little more expensive (in property value and taxes), but as long as it fits into your budget, it will be well worth your while, whether you have kids or not.

If there is a specific school or area you have targeted search for the school rankings at www.cruvita.com/rankings.