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REALTOR®: Just How Important is Location?

Monday, October 22, 2007

Most prospective home buyers have heard the old adage that the three most important factors to consider when buying real estate are, "location, location, location." Just how important is location? A National Association of REALTORS® (NAR) survey found although affordability ranks high in importance, buyers focus on neighborhood, distance from work, access to shopping and schools demonstrate that location is indeed significant.

This is a major reason why even as market conditions change and many markets in the nation are hurting, but the Bay Area, including San Mateo County, is still doing well compared to the rest of California, according to Geoffrey Craighead, president of the San Mateo County Association of REALTORS® (SAMCAR). San Mateo County has a healthy economy, good schools, proximity to shopping, the arts and entertainment.

Location is important, Craighead stresses. "People who have bought real estate, especially those who have had a number of transactions, are aware of the value of location," Craighead says. "However, first time home buyers should be careful to choose a location that meets their needs, even if it means paying a little more. A bargain found in a less-than-advantageous location might look to be a good deal, but its chances for resale may be lower."

The NAR survey found that value of location is unique to the buyer interests. Home buyers with growing families are likely to look for a neighborhood with close proximity to work and schools. Retired home buyers consider availability of shopping a higher priority the survey shows.

"Neighborhoods are key to the type of environment the buyer is searching for," Craighead explains. "For example, neighborhoods surrounding elementary schools tend to attract families with young children. This won't necessarily change, since families whose children are now grown find other locations more convenient and are apt to sell, creating sufficient turnover for new families with younger children."

Buyers who own two cars also tend to rank closeness to schools higher than nearby shopping, work and other factors such as public transportation, churches and recreational
facilities.

"It's important for potential buyers to examine what ranks high on their own list of priorities before they begin the house hunting process," Craighead says. "In that way, they'll have a clear idea of what amenities and services are available in the community they want to join."

The value of a house can change after its purchase. However, any change is likely to be gradual and will depend on factors, such as the age of home. Older neighborhoods tend to change more gradually. Houses located near an institution, such as an elementary school, are usually a good investment. In some cases, a buyer may want to sacrifice an asset, such as close proximity to a school, if a larger house which is farther away is more affordable.

"The whole subject of location is a personal choice for the buyer,” Craighead says. "That's why a REALTOR® will interview the buyer to determine his or her interests, priorities and financial position in order to select a range of possible homes to show."

SAMCAR is a professional trade organization representing over 3,800 REALTORS® and affiliate members engaged in the real estate business in San Mateo County. The association is one of more than 1,800 local boards and associations nationwide that comprise NAR, the nation's largest professional association, representing 750,000 members involved in all aspects of the real estate industry.

SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County. To find a Realtor in your area, Craighead encourages prospective homebuyers and sellers to visit www.samcar.org.

The San Mateo County Association of REALTORS® (SAMCAR) is a professional trade organization representing over 3,800 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula. SAMCAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in San Mateo County.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Julie Ziemelis, Director of Public Affairs, e-mail , or phone (650) 696-8214.

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