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Schools Matter in Real Estate Values

Local schools good for value of homes?

Schools Matter in Real Estate Values

It’s kind of funny.  Since Realtors aren’t allowed to say if a school is good or bad.  The government doesn’t want Realtors putting their opinions on to the consumer.  Or inappropriately affecting interest or lack thereof in a neighborhood by a Realtor’s rating of the school.  That’s why the whole industry of online rankings popped up.  There are websites like GreatSchools.org, where a consumer can go to get more school info. and the desired ratings.

Everyone wants ratings these days.  They’re on Yelp and all kinds of other websites for all kinds of other things.  I think Angie’s list was one of the first for trades people.  Not sure how long they’ll last as they try to charge money to both the consumer and the tradespeople.  Still, there is no argument, that people are craving ratings.

In a void though, there has to be something to fill the absence of what a Realtor can say?  There is., money.  Money talks.  Realtors are always allowed and encouraged to talk about value.  That’s what this business is about.  How much home can the buyer afford?  How much monthly mortgage payment are they comfortable with having on their next/new home?  Do they feel this home is a good value?  Is this home purchase a good investment?  Real estate is all about money!  They talk all the time about it averaging 5-6% return over a 30 year period.  Or something like that.

The point is, Realtors can talk about money.  So how do we bridge the gap with schools and ratings?  These things that can’t be talked about.  To money and real estate values, that can be talked about?  It’s simple.  Test scores.  In a recent printing of on of my most important Real Estate Designations, the CRS, there is an article called “Higher Education.”  It states that based on recent data from ATTOM Data Solutions “The average home value in a ZIP code with a good school was approximately $427,400 , while in a ZIP without one,. it was $241,100, according to the study.”  The study they’re referencing compared 2015 average test scores with 2016 home price values and home appreciation in ATTOM Data Solutions 2016 Schools and Housing Report.  That’s a difference of almost $200,000.  It would appear that the schools do matter.

This really shouldn’t be a surprise.  Whether you have kids or not, the quality of the school matters when it comes to Real Estate values.

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