Families want to live close to good schools, but this study from the University of San Diego's Burnham-Moores Center for Real Estate reveals the potential pitfals of buying close to a school.
KPBS Article, Burnham-Moores Center for Real Estate Study
La Jolla School District schools are some of the most highly acclaimed in San Diego. Scroll down to see homes for sale in La Jolla
Hi everybody. John Collins, San Diego Realtor. I wanted to share with you a really interesting study I read about the other day on KPBS. It was a study that was released about a week ago from the University of San Diego's Burnham-Moores Center for Real Estate. And it had to do with the effect of schools on property value.
Now, of course people want to move close to good schools. I work with first time buyers all the time, or new families that are growing, that are looking at the schools in an area and moving to be close to great schools.
What this study found out though, was that being close enough to a good school is good, but being to close can really negatively effect the value of your home. Now, when they talk about close, they are talking about within 500 feet for these effects, which may not seem like a lot, but if you ever look at the number of home within 500 feet of a school, that's close to two footbal fields, you're talking about a lot of houses.
Now the way they found this effect was by looking at 20,000 transactions that spanned 2010 and 2011, and worked out the numbers to see the same house effectively, what it sold for if it was within 500 feet or futher than that. What they found was that the same house will sell for 6.7% less if it is within 500 feet of a public school. What's very interesting is that the better schools, quote-unquote "better schools" things like private schools, which are going to have people coming from a larger geographic area, maybe more traffic, more of the things that people are worried about, actually doubles the negative effect on the value of the property; 14.4%.
Now the further away you get from the school the value goes up, and up, and up, per one thousand feet. I'll link to the article so you can read more about it. I thought it was really facinating. But what it means if you are buying or selling is that you want to be very concious of the proximity of the home to a school. If you are buying, obviously that's going to effect the future value of your investment, and it should effect where you're bringing in your offer. If you're selling, maybe you put your house on the market and you priced it out based on comparables in the area, but you're closer to the school and you're not getting the offers you expect, that might be why.
If you have any questions about this, please call me. I am happy to discuss it, either this item or anything else. Subscribe to my YouTube channel if you like this kind of information, and you can always reach me via my website; BeachRealtySan Diego.com. Thanks so much for listening. I hope you guys are having a great day in America's Finest City, and I'll talk to you soon. Thanks a lot!