Right now, millennials seeking family homes are the biggest buyers in the current market and many are wondering if a property’s school district has any effect on the property value.
The simple answer is yes. It will come as no surprise that location is everything in the housing market, and school districts can significantly add or subtract a huge chunk of value from a home even between properties on the same street.
If you’re looking to buy or sell in San Diego, your property or prospective property’s school district will have a huge impact on the sale, whether you’re interested in putting kids through schooling or not.
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The Same Street, Different Value Phenomenon
Largely speaking, properties in the same neighbourhood tend to have similar values. The exception? Neighbourhoods divided by school districts may have significant variations in value without differences in square footage or amenities.
Buyers will pay an average of $50 more per square foot for a home in a top-ranked school zone compared to a home in an average school district. In Los Angeles, for example, homes in top-tier school districts cost about 79% more than those in average school districts. While this may seem drastic to child-free buyers, parents are willing to go to great lengths to ensure their children receive a great education.
This Bigger the Increase in Enrollment, the Higher the Home Prices
There’s a direct relationship between rising enrollment and rising of property value. If you’re living in a school district with rapidly increasing enrollment, that’s a good sign the value of your home and the demand for properties in your area will also be increasing.
Specifically, districts with seven-year gains in enrollment saw average home price increases of 33%.
If you’re considering selling your property, it might be smart to look into whether or not your school district’s enrollment is increasing or decreasing, as the cost of your home may drastically change in the coming months or years.
Lower-Rated School Districts Mean Lower Taxes
There are benefits to lower-rated school districts, especially for childless buyers and sellers. If you want to keep expenses low in the long term, that means considering property taxes in your area.
In general, the better the school district, the higher the property taxes. If you’re still debating the best area to buy, an experienced real estate agent in the San Diego area should help you make the best decision for your overall happiness both short-term and long-term.
Don’t Rely on Your School District
School districts are only one piece of the puzzle. Those seeking homes in a desirable school district are also looking for homes suitable for a family. This means functioning kitchens, spacious bedrooms, outdoor space, etc.
While there’s no doubt a desirable school district will increase the value of your home, a smart seller won’t rely on only this. Top real estate agents attest to the importance of updating your home prior to sale, so talk to a realtor today to find out how to sell for the best price!