9 Factors First Time Homebuyers Should Use to Determine the Value of a Neighborhood!

Buyer Tip #1 – Neighborhood Value

Location, Location, Location!

When I first began learning about real estate over 10 years ago, I would hear this phrase on repeat. I was quick to understand that location was a very important factor to consider when buying or selling a home. 

When you first begin your search for a new house and begin to do research you should make a list of what is important to you in a neighborhood. A lot of first time homebuyers tend to focus solely on the details of the house itself such as paint colors, farmhouse kitchens or elegant bathrooms. However, many outside factors will determine the value of the house and if it’s a good buy.

School District

A great school district can substantially increase a neighborhoods value. I personally use www.niche.com to look at school district rankings when looking at houses. They rank multiple categories and it is a great option to use to compare different schools.

Crime Rates

Make sure to check on the crime rates in the area. You can contact the local police and they can give you any statistics you’d like to know.

Commute Times to Work

A big factor to consider is the proximity to where you work. Distance can be misleading depending on whether it would be a highway or local road commute. If possible, try driving the route beforehand during your normal commute in order to get a better judgement.

Traffic Noise/Busy Streets

Is the house on a busy road or near a highway? If you have younger children you may want to live in a neighborhood with low traffic for safety too. I personally live across the street from an above ground tram (the T if you’re from Pittsburgh) and after a certain point I don’t even realize or hear it go past our house anymore. 

Nearby Parks/Dog Parks

Living in close proximity to a park could be a great bonus if you enjoy the outdoors. Hiking seems to be a new hobby many have picked up during COVID-19. Having a park near the house could also be beneficial if the lot is on the smaller side.

Walkability Score

Walkability score is a measurement that determines how friendly an area is for walking. A score over 70 would be considered a good walkability score. If you go to www.walkscore.com you can easily find the score of any area. Most suburbs are going to have lower scores and urban areas will be higher. A score of over 90 would be considered a walkers paradise.

Newer Development

Look at the businesses in a particular area. If you see a lot of newer or trendier retail stores, that may be an indication that companies view that area as an up and coming neighborhood. If the area is investing in the commercial side of real estate that will make houses more desirable for buyers.

Condition of Neighboring Houses

When you go and do a walk-thru of a house make sure to look at the condition of the other houses on the street. If the neighbors keep up with the landscaping and any repairs on the outside of their house, it will make you a happy neighbor.  

Length of Time from List to Close

Do some homework on similar houses that have sold recently and see how long they were listed. Check and see if they had to reduce the price at all or if they were on the market for a number of months. This will give you a good idea of the market and could give you some insight on how to make an offer as well. If the houses are selling quickly and over asking price, you’ll know you need to make a competitive offer and fast.

This is my first attempt at a blog post, so don’t be too critical! If you enjoyed the article please let me know and feel free to share! If you are on Instagram, you can follow me @novakpropertysales. You can click on the icon on this website.

*All information in this blog is my opinion only and I was not compensated for any of the recommendations.