Home Location Affect on Home Price

Does home location affect home price?

1 Answer

Home location is probably the most important factor in home value, or at least right up there with the home itself!  A home in a poor location (adjacent to active railroad tracks, an environmental waste dump, downwind from a manufacturing plant, built on swampy soil) won't ever get the top price in the market because buyers will "discount" the location. A bad location is usually an incurable defect. That means it cannot be "fixed" -- it will always be a bad location.

On the other hand, a great location can make up for a bad property. There will always be people who want to buy run-down homes in great neighborhoods, because they can "fix up" the homes.

In fact, a rule of real estate investing has always been to buy the "worst house in the best neighborhood" and take your value from the neighbors. The opposite of this is to buy the best house in the worst neighborhood, which is a poor investing strategy, because your house will take its value from the (downward-trending) neighbors.

There's a saying in real estate: LOCATION, LOCATION, LOCATION

Yes, location is key to successful real estate investment and is a primary driver of price!