Anyone who’s ever been exposed to the real estate industry has probably heard the old refrain “location, location, location.” It’s been reproduced in jokes, memes, and plenty of other media since time began, but what does it actually mean? Location is the single most important factor in buyer’s decisions – it affects resale values, potential buyers, and even the potential for renovations in the future. Here are three reasons why location is so important in real estate.
- You Can’t Change the Location
When you buy a house, you can change pretty much anything about its condition or appearance. You can add space, change layouts, and make other renovations that will affect the resale value later. What you cannot change is the neighborhood where the house is located. Thus, it’s a huge factor when you buy the house – does the location work for you? Does it have potential? If your dream home is in a neighborhood that’s on the decline or has a high crime rate, it might be time to make some compromises. You can always make renovations later on.
- Supply and Demand
Great locations directly influence the supply and demand of housing – houses in good locations tend to appreciate in value, and their limited nature makes them desirable and adds demand. Resale is everything when you’re buying real estate, and location directly affects that.
The supply and demand concept also affects potential landlords – finding renters for a property in a desirable location might be simple, but finding renters for a property in a bad location can be a total nightmare.
- Quality of Life
Buying a home isn’t all about resale value – if you’re planning on living in the house, you want to ensure that your quality of life is the best that it can be. Location plays a huge role in quality of life – is the house close to local schools? Can you easily get to work on time? What are the available amenities in the area? Living in a neighborhood without a wide range of amenities can really affect your daily life, so it makes location even more important.