Just how important is location when choosing your next property? Location is vital for finding the right place to settle down and put roots, and more often than not, when people are in the market for a new property, the location is often a significant factor in whether or not they’ll even look at a property.
When buyers choose real estate based on a specific area or zip code, they often do so for deeply personal reasons. These reasons could include its proximity to good schools, medical care, good access, space, and other amenities. Understanding why different locations and zip codes command different prices is crucial, and it’s a decision that’s often driven by personal preferences and needs, making the connection to the chosen location even more significant.
This post will examine what contributes to a great location when buying property. It will help you understand how this influences the price you will pay and how to determine if the property’s value is worth it, especially with the current market showing no signs of prices falling.
Centrality
Centrality, or the proximity to the hub of a town or city, is a key factor in determining property prices. The closer a property is to the city center, the higher its price is likely to be. This is because land is limited in more built-up areas, making zip codes contained within them more desirable, and therefore pushing up prices.
In contrast, land around these areas with more space to build upon and develop can often be cheaper because they’re not as centrally located. While it’s not just as simple as centrally located = higher prices, it is an influencing factor in the value of real estate within an area.
While there can be bargains to be found in more build-up in, demand locations, it’s likely these will be properties that have fallen into disrepair due to being uninhabited or are in less desirable zip codes where people have moved away from.
Developments
Another factor that can significantly influence the price you pay for a property is whether the area is earmarked for development. Commercial development, for instance, can enhance property values by introducing new amenities and services to the area, thereby making it more desirable. This means that if you invest in a property in an area with planned developments, you could see an increase in your property’s value over time.
When it comes to looking for property, always try to research the area and uncover if any developments are going to take place in the future that can impact the reason you bought in this area. This forward-thinking approach Can help you anticipate potential changes and make informed decisions about your investment.
Amenities
The amenities in your chosen location can also influence the price of the surrounding real estate. The better the local school, transport links, and civil infrastructure, for example, the more desirable a location will be, and the higher prices will be. This reassures you that your investment is not just in a property but in a well-connected and desirable location.
Lot Location and Zip Codes
The specific zip code within a location and the actual location of the lot you’re considering can also impact the property’s value. For instance, let’s consider the Destin Zip Code and its influence on property prices. Destin has two zip codes, and one is more desirable than the other. This means that buyers looking for property in this bustling tourist location may pay more to be in the primary zip code compared to the secondary zip code, which is slightly further from the action.
In addition, the physical location of the lot plays into the property value, too. Some types of lots are more desirable; those facing the coast or on the coastline will automatically be costlier, while lots on busy roads or backing onto commercial properties or areas will also be lower, and the surroundings can make them harder to sell.
Crime Rates
Everyone wants to live in an area where there is a low crime rate, and kids are safe to play out in the street. However, this ideal, while possible in many locations across the country, comes with a higher price tag. Geographical locations that are impacted by crime are going to have lower selling prices and are going to be harder to sell compared to their safer neighborhoods. Therefore, when considering a property, it’s important to research the crime rates in the area to understand the potential impact on property values and your quality of life.
Looking into crime rates for the location you’re considering alerts you to the prevalence of and type of crime committed and whether you will be safe or feel safe living there. While you should expect some level of crime in most locations, like the other factors mentioned, this can vary, and for those areas with lower crime rates and are deemed “safer,” you can expect to pay more.