Is It Still Location, Location Location?
February 20, 2013
The old adage that the three most important items for buying and selling a house are "Location, Location, Location". While location is certainly a factor in the sale of a property, it may no longer be the most important factor. Why? Because many of today's buyers need loans in order to purchase a home and the amount of loan for which they qualify may not allow them to purchase in the choicest location in any given community. If a buyer only qualifies for a $250,000 loan amount and properties in the most desirable location have asking prices of $500,000 and up, pricing rather than location will be an important factor in the choice of a home. This is not to say that location doesn't matter, it just indicates that there are many locations that can be desirable.
My favorite way of describing locations is to divide location into two parts: location within a community based on perception of desirability and location based on a particular neighborhood. I use a scale of 1 to 10, 10 being the most desirable and 1 the least. In the market area where i work the most, there are neighborhoods that are 8, 9, or 10, but there location in the community may be a 5, 6, or 7. Neighborhoods are great because the residents take pride in their homes and actually enjoy their neighborhood amenities.
I would argue that the three important factors in buying or in selling a property are Price, Condition and Location. When these factors are positive, a homeowner can sell at the highest possible price and a buyer will know that the purchase will be of good value.
The old adage that the three most important items for buying and selling a house are "Location, Location, Location". While location is certainly a factor in the sale of a property, it may no longer be the most important factor. Why? Because many of today's buyers need loans in order to purchase a home and the amount of loan for which they qualify may not allow them to purchase in the choicest location in any given community. If a buyer only qualifies for a $250,000 loan amount and properties in the most desirable location have asking prices of $500,000 and up, pricing rather than location will be an important factor in the choice of a home. This is not to say that location doesn't matter, it just indicates that there are many locations that can be desirable.
My favorite way of describing locations is to divide location into two parts: location within a community based on perception of desirability and location based on a particular neighborhood. I use a scale of 1 to 10, 10 being the most desirable and 1 the least. In the market area where i work the most, there are neighborhoods that are 8, 9, or 10, but there location in the community may be a 5, 6, or 7. Neighborhoods are great because the residents take pride in their homes and actually enjoy their neighborhood amenities.
I would argue that the three important factors in buying or in selling a property are Price, Condition and Location. When these factors are positive, a homeowner can sell at the highest possible price and a buyer will know that the purchase will be of good value.
posted by shirley harry at 8:54 AM
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