How Location Impacts Real Estate Value
If you have bought or sold a home recently, you may have noticed how two homes can be very similar, yet be priced very differently. That difference can often come down to location. A property’s location affects buyer demand, convenience, future development, and ultimately what buyers may be willing to pay when purchasing it. Even within the Augusta area, different communities appeal to buyers for different reasons. Someone may move from Downtown Augusta to Thomson to get away from the “city” feel. On the other hand, someone may choose Martinez because it better fits their lifestyle while still providing relatively easy access to Augusta’s medical district.
In this blog, we will discuss how location impacts property value, even when comparing neighboring cities like Augusta, Evans, Martinez, and Grovetown.
Why Location Matters in Real Estate
When someone purchases a home, a major factor behind their decision is often the home’s access to the surrounding community, not just the home itself. The home and its features are a big factor, sure, but buyers also consider schools, transportation access, nearby industrial activity, shopping centers, crime rates, and so much more.
If someone finds the perfect home near the places and amenities that matter most to them, they may be more willing to pay for that property. They are paying for a good home, yes, but they are also paying for their living experience for the next few years, at least.
You can change different aspects of your home, such as renovating the kitchen or replacing the roof if you don’t like it. However, if your favorite retailer, restaurant, or other amenity closes down, you can’t just pick up your property and take it somewhere else. This is why location is such a big deal in real estate.
Proximity to Employment Can Influence Buyer Demand
A big reason that people consider moving is to be closer to their job. A shorter commute can make a significant difference when you’re making the same drive multiple times per week.
Let’s use Augusta for example. The Augusta area has a lot of jobs to offer, from retail positions in small shops Downtown to the multitude of options in the medical field that are available near Piedmont, Doctors Hospital, and the Charlie Norwood VA Hospital. If you work near Downtown, you may feel more incentivized to buy a home in Augusta or Evans versus somewhere like Harlem, Appling, or Aiken.
Access to Amenities Adds to a Location’s Appeal
A property’s value is partly driven by what buyers in a particular market want. Shopping, restaurants, healthcare, and entertainment options that matter to one person may not matter to someone else.
A study done by the Zillow Research team shows that homes within 1 mile of grocery stores (in this case, specifically Whole Foods and Trader Joe’s) are worth more and appreciate faster than the average U.S. home. While those particular grocery stores aren’t in our area, we do have amenities that can similarly contribute to a location’s appeal. Think, for example, The Augusta National, Evans Towne Center Park, Patriots Park, Mullin’s Crossing, etc.
Some people want the luxury of living just a few minutes from these amenities. Others are more incentivized by properties farther away, potentially with more land in a quieter part of town.
Growth and Development Can Change an Area Over Time
Different parts of the CSRA have experienced considerable growth over the years. New businesses, residential developments, and infrastructure can significantly change an area’s appeal to buyers.
Columbia County is a good example. With new homes available and many new commercial developments over the past few years such as the Columbia County Performing Arts Center and the Evans Towne Center area in general, we have recently seen an active inventory increase while prices have remained relatively steady. Again, it all depends on the home’s amenities, location, condition, and more. Homes closer to these new developments are likely listed at a higher sell price than those on the outskirts of town.
Location Can Affect Homes Differently Within the Same Community
While the city you choose can influence a home’s price, its specific neighborhood and surroundings can have their own market appeal. Is the property on a main road or a quieter street? What are the area’s traffic and noise levels like? Does the home sit on a cul-de-sac?
You may even be surprised to find that some homes within the same neighborhood can sell for much more than others, even when they appear similar at first glance. Remember that even things such as construction materials, updated features, lot characteristics, floodplain designations, and other property-specific factors all take part in a property’s value.
Location is Only One Part of a Property’s Value
A local real estate professional can help you understand comparable sales, buyer demand, neighborhood trends, and more. Understanding how all of those factors interact requires looking at the local market as a whole.
Location is important and can play a large role in the sale price of a property. However, it is not the only factor that goes into a property’s value. Before buying or selling, it helps to have insight from a real estate professional with local market knowledge you can trust. Whether you are searching for a home in Augusta, Evans, Martinez, Grovetown, or the surrounding CSRA, Sherman & Hemstreet’s local real estate team can help you understand how location and current market conditions may influence a property’s value.