How to Choose the Right Location For Your Home
Strategies for picking the perfect neighborhood
What kind of house you purchase is of course important -- but WHERE that house is located is just as vital! Picking the perfect location can be overwhelming, though, especially if you don't know what to look for. So in this video, Brent talks you through a few factors to consider, as well as strategies for making the right choice.
More of a reader? Catch the video transcript below!
Brent the broker here with you today and today we're going to be talking about location, location, location.
We're going to talk about two key factors when it comes to location:
How to determine whether you're in a good location
Some things that go about supporting that notion
The first thing we want to consider is the fact that every area has these locations that are really hoity-toity, right? For example, in my area in San Diego, a good example would be La Jolla. La Jolla is one of the crown jewel neighborhoods of San Diego. Now, we all can't afford to live in La Jolla (myself included). So, how do we parse out the areas that we can afford?
1. What can you afford?
First, you’re going to want to set a budget and go through the mechanisms of your personal finance. Doing this will immediately eliminate certain neighborhoods and locations that are out of your price range, so you can focus on the areas that are affordable for you.
2. What does the historical data show?
Out of those areas, how do you narrow down your list further and hone in on the best areas in your price range? A good metric to look at is the rate of appreciation of the properties in the area. So, say you have area #1 and area #2 that you’re considering. If you go back five or ten or twenty years and the rate of appreciation for the homes in area #1 is higher than in area #2, you’ll want to prioritize homes in area #1. Tap your agent for some in-depth data - a good real estate agent will be able to get you the historical data of each neighborhood you’re interested in!
3. What kind of development is happening in the area?
The next factor to consider is area development. What’s going on in the neighborhood? What kind of development is happening? Are there new jobs coming to the area? For example, I know Apple just signed up to build a campus in San Diego, so I’d imagine that part of town is probably going to get pretty popular.
Are they building new schools? New roads? New houses? These factors can help you predict rising home values in the coming years.
4. What are your personal and lifestyle preferences?
The last piece of the location puzzle? Your personal preferences and lifestyle, of course! If you don’t have kids in school, then the schools in the area probably aren’t going to matter much to you. If you like being outdoors by the beach, you’ll want to prioritize neighborhoods closer to the coast. Or maybe you are dreaming of land, space, and privacy. All of these considerations will help you narrow down your list further.
Pro Tip of the Day
Your real estate agent (at least in California, where I practice) is not allowed to comment on the quality of the schools OR the nature of crime in an area. So, those are things you’ll need to do your due diligence and research yourself.
However, what your agent can give you is data on the market in an area. Your agent should know what’s going on in the neighborhoods that they’re selling in and why an area is poised for growth or not.
So, make sure that you’re doing the due diligence that you need to be doing on your own (and doing it thoroughly!) and then make sure you’re asking your agents the right questions about the data that they have, both past, present, and potentially future.
That’s going to be it for me today, guys! Thanks for sticking around to the end!
Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.
