The Impact of School Districts on a Home Sale: 5 Takeaways

When you are in the process of buying a home, a common thought you may have if you are moving with children is whether or not good or bad schools affect home values. Schools can be a "make it or break it" moment for buyers, and countless factors will influence the decision to buy a home. Apart from the size of the home, which neighborhood it is in, upgrades, and locations all play a significant role in impacting the decision, as does the importance of school districts.

1. How are Property Values Affected by Schools?

Test scores in a suburban neighborhood are among the many tools to determine whether an area is a "good school district," while many more factors should be considered. Purchasing a home in a strong school district means paying a higher price for the said home, it can be a cheaper option than investing in the costly expenses of private schooling. Sellers who are aware of this trend will try to get away with selling their homes above market value because many buyers might be willing to pay a premium to be accepted in certain school districts.

Holly Peeples of Karen Bell and The Bell Team had this to say about how property values are affected by schools:

"If there are enough houses that sell above market value in a specific area, the value of all the other surrounding houses will rise as well, thereby impacting home values. These types of statistics, however, apply only to those who put their children in public schools, as private schools are determined by the school itself and not by the school district it is in; those who live near private schools will command higher home values due to the proximity of the private school."

2. How Do Good Versus Bad Schools Impact Home Values?

Home values are typically higher in areas where high-scoring schools are located. Many homes that are located near high-performing schools are more expensive, with increased demand than those in lower-performing school districts. Rental options can also be found 30% lower in high-performing school districts. Those who live in these good school districts typically pay a considerable amount to reside there.

3. How a School District Can Impact Your Home Sale

There are many websites in our day and age of technology that are used to determine the ratings of school districts, namely the one your home you might be considering putting up for sale can be found in. These types of websites use a five-star rating system based on test scores, student-to-teacher ratio, and other possible factors. Schools that have a rating of four or higher are insulated from declining home values during a possible recession. If your home sits in a one to three-star school district, significant losses can be noted.

Gregg Camp of Santa Cruz County & Monterey County Real Estate had this to say about how a school district can impact your home sale:

"It is easier to sell your home for what it is worth during market volatility, and when the market is strong you can command an above-average market price point based on the rating of the school district where your home is located. Homes found in top-performing school districts have the advantage of selling faster than those housed in lower-performing school districts."

4. Can You Find a Median Home Price in a School District?

To determine the median home price in a school district, take the property sale prices in the school district and put them in order from lowest to highest. Look at the number in the middle of the list as that number is the median price for homes in the school district. In other words, it is the middle number. For example, take 800 home listings in a school district, put them all in a list in ascending order, and the 400th number on the list will be your median home price for the school district you are looking at.

5. Do You Gain Anything From Living Near a School?

The pros and cons of living next to a school should always be weighed. For those with young children, this type of living situation might be ideal. For others, this living situation can be challenging. Living near a school can give parents of young children peace of mind knowing their child is safe. Most elementary schools come equipped with playgrounds, easily accessible to the public after school ends each day. This can be a positive selling point for families relocating with young children. Homes located within proximity to schools have a strong property value, as high walkability scores reflect brightly on the home, therefore increasing the overall property value.

On the downside, schools tend to bring in higher traffic levels with the drop-off and pick-up of children, meaning higher traffic noise at certain times of the day. In addition to noise, having a school within proximity to your home can mean loud noise while the students play outside during recess. If you are a parent to a small child such as an infant or toddler, the noise will be an inconvenience.

Conclusion

All children have unique needs when it comes to securing and fulfilling education, and it is crucial to consider the school's environment to ensure a strong support system that advocates for student wellness. Whether or not you have children, it is always beneficial to you to consider homes in strong school districts as the home's overall value will most likely continue to rise after the purchase as a result of the school district's performance. Let the professionals at Benchmark Realty guide you in finding your dream home in a great school district in Nashville, TN today!