There are various factors that can affect your property value. Location, neighborhood, historical prices, age, condition and upgrades made to the property are just some of the more obvious factors. Less obvious, perhaps, is how schools affect your property value. In honor of Back-to-School season, we are going to dive into this topic some more.
We work with many families who have school-age children. Oftentimes, these families' number one priority when choosing the right home is making sure the nearby schools have good ratings. However, buyers without children can also benefit from being in close proximity to a top-rated school.
According to the National Bureau of Economic Research, "a $1.00 increase in per pupil state aid increases aggregate per pupil housing values by about $20.00." This indicates that potential residents value spending on education, and whether or not you have children in the local school, you can benefit. Not only will more school spending increase your property value, but if the local school is historically "good", this will also greatly help your resale value.
Additional driving factors when it comes to schools are test scores and walkability. Economists have estimated that a 5% increase in test scores can raise nearby home values by roughly 2.5%. Further, the closer you live to a good school can also have a positive impact. Homes within walking distance tend to have the best property values.
Our team members Pam, Toni and Teri have all raised their children in Boca Raton and are all very familiar with the local school system. Whether you are looking for a home that suits your child's schooling needs or for a savvy investment property, contact us to start the conversation!