Logan Gratz explains why location is key.

Talk to real estate experts, and the number one key to real estate is location. But why? Many aspects impact a property’s location. They include crime rates, school districts, taxes, rules and regulations, amenities, etc. Local realtors have the best resources to help home buyers make the most informed decisions.

Crime and Safety

The American dream of owning a home is a truly valued one, but feeling safe in and around a home is critical. Being located in a low-crime area plays an important role in the value of a home and the ability to resell it, so being able to find good resources on historical crime statistics is very important. There are many good local and online resources. However, as with everything online, it’s important to verify the information is accurate and collected from a reputable source. Getting information from local law enforcement and community reports are great resources.

School Districts

Data suggests that school districts play an important role in property values. The Missouri Department of Elementary and Secondary Education (DESE) has great resources for public schools’ data that can be reviewed online. One important factor is how close the home is to the school. Accessibility to bus services, shorter walking distances, and shorter commutes may lead to higher values. Higher-performing schools also lead to higher home values; a variety of high performing public and private school choices is even better. Most parents prefer a good number of options when looking at where to send their kids. Fortunately, here in Central Missouri, there are many good private and public school options.

“Location is key when buying, and understanding all of these factors is important for future resale.”
Logan Gratz

Taxation

Everyone’s favorite topic: taxes. Property taxes can have positive or negative impacts depending on a home’s location. Understanding what the taxes are and where they are going is key. Some areas have a neighborhood improvement district. This is an added tax for projects the neighborhood agrees to complete. These lead to larger tax bills until the project is paid off. There are a few neighborhoods in Central Missouri with these in place. Higher taxed districts can lead to affordability problems.

Rules and Regulations

Whether it be deed restrictions, HOAs, building codes, municipal codes, or other constraints, restrictions on a property affect its value. Deed restrictions are typically set by developers. These restrictions may say what size or type of home can be built and what can be done on the property. HOAs also have these restrictions and typically come with additional fees. Those fees are often for the amenities, such as a community pool, exterior maintenance of the home, lawn care, or snow removal. There are also building codes and municipal codes. Those who live outside a municipality and in a county usually have easier building and municipal codes. However, that can come with fewer amenities.

Amenities

It is statistically proven that having more amenities increases property values. There’s a reason beachfront homes are more expensive than Central Missouri properties. Many factors in Central Missouri come into play, such as access to local grocery stores, good healthcare, a good job market, and entertainment. Having better access to those will lead to higher property values.

Knowledge is power. The more informed homebuyers are, the better decision they will make.