What is in a location? Everything. Well, not everything, but a heck of a lot. “Location, location, location” isn’t the real estate industry’s tagline for nothing. When you buy a home, you’re not just buying a physical structure. You’re actually buying into the location and what that location offers. You’re buying into the lifestyle, the community, and the potential of an area. For many, and for good reason, the location plays one of the most important factors when purchasing a home.

Why is location so important?...

It determines your home’s value

The surrounding area and neighbourhood are going to influence the value of your home. If it is in a desirable neighbourhood this is naturally going to increase the value of your home. As opposed to a neighbourhood with less or no desirable amenities, higher crime rates, etc., the value of your home will not be as high. People are not only paying for the home but everything that comes along with it. People are often much more likely to spend more money to live in a desirable location that meets their needs.

It determines resale value

Location is often top of mind, but even more so for those who plan to eventually resell. If you are in a more desirable neighbourhood, the easier it will be to sell when the time comes. An in-demand neighbourhood will help you sell your home potentially quicker and at a higher price point.

Now you may be asking… 

What makes a location desirable?

•  Local Businesses, Amenities, and Services: a desirable location is often based off of the local businesses, amenities, and services offered. People in the city, especially busy people, enjoy and often prioritize convenience. Things like close proximity to grocery stores, drugstores, and other necessities are important. For many in the city, proximity to dining, shopping, and entertainment options are also highly valued and can increase the desirability of an area.

• Public Transportation: A transit-rich neighbourhood is often typically favoured in a city, as many opt for public transportation for their daily commute. The more bus, metro, or train routes offered in the area, and the easier it is to get around the city, be it for work or pleasure, the higher the desire. Ease and convenience are huge players in the name of desire.

• Schools: A huge factor for young families, expecting families, or those planning on children in the future is the access to good reputable schools. Other factors here include the distance to the schools. Is it on a bus route, or in close walking distance? These are key considerations many parents will have. At the forefront for many parents’ minds is their child’s education and being in close proximity to reputable schools is definitely a contributing factor to increasing the desirability of a neighbourhood.

• Recreational Activities & Parks: Easy access and proximity to green space and recreational opportunities can heavily influence a prospective buyer. Many buyers are attracted to close proximity to things like parks, walking/bike trails, nature, and recreational opportunities. It’s a convenient way to get time outside, be social, and get some exercise in. Many people place value on their social and physical wellbeing, and close proximity to these kinds of amenities are highly sought after. Also, ideal for families with children, pets, and those who enjoy high levels of activity.

• Future Development: If a neighbourhood is continuing residential and/or commercial development it is often a promising sign for a good resale value of your home. Buyers are not only interested in what is but are also attracted to the potential and what is to come. The development of more restaurants, grocery stores, or shops has the power to be beneficial to current you and future you. Don’t only invest in the current neighbourhood, but in the future neighbourhood as well.

• Geographical location: When it comes to geographical location everyone is going to have their own preference. Be it urban, suburban, or rural. You may have certain criteria when it comes to a geographical location such as close to family or to your work. For those who are interested in more city living being geographically close to things like major roads/highways, or local amenities will be considered desirable. Whereas those who prefer a more rural location are probably going to consider a location that offers a decent amount of land and privacy as most desirable.

 What it comes down to

Your home can change, and you have control over that. You can do repairs, and renovations, and updates. That is in your power. Outside factors, such as location and neighbourhood development, are much less in your control. That is why so many put such a great emphasis on where they are living and want to ensure that the neighbourhood, they choose to call home, offers what they need. At the end of the day location plays a large role in influencing home value and desirability.