How Proximity Affects Your Home Value
Location, location, location.
You’ve definitely heard how important this is in real estate — and that's because it's true! Location is a crucial factor when it comes to the value of your home. Not only does what part of town you are in matter, but what is physically near you can actually help or hinder your property value. We put together a list of the most important proximity factors that will increase as well as decrease your home value.
Factors that increase home value
Homebuyers who have children are willing to pay more to live in a home that is closer to schools, especially ones that have a good reputation and high academic scores.
In most cases, homes that tend to be within walking distance or a short drive from entertainment opportunities like a movie theater, golf courses, and sports complexes usually sell for more money than homes farther away. Proximity to Rogers Centre (home of the Toronto Blue Jays), Scotiabank Arena (home of the NBA champs Toronto Raptors and the Maple Leafs) and BMO Field (home of the Toronto Argonauts and Toronto football club) are all highly desirable areas.
Homes with close proximity to grocery and shopping stores usually sell for more. Being close to popular grocery stores like Loblaws, Metro and Sobey's has shown to increase your home value and having a late-night Walmart less than half a mile away has shown value increases of 2-3%.
Having great scenery and access to outdoor recreation like Lake Ontario, bicycle trails, nature walks, the Beaches district, parkes and dog walking parks usually increase a home’s value. High Park with its very popular summer Shakespeare in the Park, as well as Toronto’s historic Leslieville, Cherry Beach, Islands and the historic Evergreen Brickworks areas, are also all highly desirable areas.
Depending on where you live, things like cityscapes, parkes, ravines, cycling trails, or golf courses tend to increase value and even help sell your home faster.
Starbucks, Tim Hortons & Second Cup
We all love a good cup of joe in the morning, especially if you like to make a quick stop on the way to work. According to Forbes, homes that are within a quarter-mile of a Starbucks, have appreciated 96%.
Factors that decrease home value
Aside from being an eyesore, toxic emissions released from power plants will not only decrease the air quality but the value of your home. In fact, the University of California at Berkeley has found that homes within 2 miles of power plants could be worth 3-7% less.
Although being close to railroad tracks, airports, and busy intersections is convenient for when you need to leave, it can be pretty noisy when you are at home which could drop the value of your home.
Areas and neighborhoods with higher crime rates tend to decrease home values. The American Economic Review has found that if a registered sex offender were to move into your area, it could reduce your home value by 12%.
As we said above, the top-rated schools are a big priority for some home buyers so homes located in areas with a low-ranking or closed down school could result in a home value reduction of up to 22.2%.
Cemeteries & Funeral Homes
Whether you believe in ghosts or not, the thought of living near a cemetery or funeral home is a bit eerie. According to Realtor.com, homes with a cemetery close by could be priced 12% less than homes in other nearby areas.
You may think that being right around the corner from a hospital is a good thing in the case of emergency, but with hospitals comes ambulances and sirens. And there’s no telling what time of day or how many times a day you might hear these noises. Hospitals in close proximity have decreased home values by around 3%.