How Good Schools Can Add Value to Your Property
The latest 2016 Schools and Housing Report by ATTOM Data Solutions recently concluded that home values always get a boost whenever a school located nearby receives high ratings. The conclusion came from the report's observation that homes in ZIP codes where there are high-ranking elementary schools in the area are valued by 77% more as compared to homes in ZIP codes that do not have a high-ranking school nearby.
The premise of the report is simple: researchers looked for "good schools" that had an overall test score of at least 1/3 higher than the state average from last year's data. And out of 19,000 elementary schools across 4,435 ZIP codes, the research team found that there were 1,661 ZIP codes that satisfy the team's requirement for a "good school". In these ZIP codes, the average estimated home value is $427,402--- a value that is 77% higher than the average estimated home value of $241,096 in 2,774 ZIP codes without any "good school" in the area.
A home buyer's checklist often requires that their "dream home" be in a community where good schools are conveniently located nearby. And in lieu of this study's findings, most home buyers who factor in the school in their home purchase are right: there is a monetary benefit to choosing a home with the quality of education in a neighboring school in mind. In fact, the study found that homes located near a good school have gained $74,716 in value from the time of purchase-- resulting to a 32% ROI on the part of the home owner. In communities where there aren't "good schools" nearby, the increase in value was a measly $23,311 on average, with an ROI of 27.5%.