Given the strong correlation between high-performing schools and surrounding neighborhood home values, buyers and sellers should be aware of the ways in which well-ranked districts can affect values, especially in highly ranked areas.
So, what does this mean?
According to an article by Matthew Strozier in The Wall Street Journal last month, “schools have always been a driver for home buyers.” If purchasing a home in one of the higher ranked areas, buyers with school-age children can rest assured that their kids will be receiving a top-notch education. Buyers are making an investment in the future value of their home. It was also reported there were fewer foreclosures in high-ranking school districts, and Seattle was one of the cities included in the study, which showed that as the ranking of the school districts went up, the percentage of foreclosures decreased.
People will always seek the best education available for their children, and there is always competition to get into a great school district. For homeowners, this means the value of their property will hold as the market fluctuates. As Strozier writes, “Higher-rated school districts also maintained higher home-sale prices, and higher home prices per square foot.” For the residents of areas with high ranked public schools, this means that sellers can ask for a higher price than an equivalent home in a lower-ranked district.
Buying a home is a serious investment. Before taking the leap, educate yourself about the school system and the districts in your areas of interest. Don’t be afraid to ask questions. Don't allow national or regional statistics to make you believe otherwise. Even now there are well-qualified buyers wanting to buy homes in areas with good schools. Even if children aren’t in your future plans, owning a home in an area with high ranking schools, will greater ensure the value of your home especially in these uncertain economic times.
Ken Urman
Real Estate Broker, CDPE
(206) 230-0833
