Real estate is about three things: rent, rent, rent

Speculators, real estate professionals, and buyers have long agreed that the deciding factor in a property’s value is its location. Take two identical houses on two identical plots of land; one is located in San Francisco, while the other is located in rural Idaho. The San Francisco house will be worth several times the value of the Idaho abode. There is an even larger gap between real estate values ​​in the most desirable places in the world, like Manhattan and London, and cities like Detroit that, due to many location factors, are among the least desirable places. While Manhattan home prices are some of the most expensive anywhere with small condos valued in the millions, family-sized homes in Detroit have recently sold for as low as $1,000.

What types of location-related criteria create such a serious discrepancy? Factors like:

• Proximity to shops, jobs, entertainment and other conveniences
• The economic vitality of the place.
• Excellence of public services such as libraries and fire brigades
• A low crime rate and a well-staffed police force
• Well-maintained parks and neighborhoods
• A respected school system
• comparatively low tax

These factors translate into property values ​​that are higher in urban locations, but only if the city in question has a stable economy, reflects its community’s pride in maintaining parks and neighborhoods, and has vital business and commercial districts. . A high-priced city like London meets these criteria, while a city like Detroit does not. Detroit’s economy, closely tied to the troubled auto industry, is shaky. Job opportunities are limited. Some neighborhoods are abandoned or in poor condition. Thus, their real estate values ​​are on the floor.

Many states, such as Pennsylvania and New Jersey, offer several good locations. Doing some research beforehand on the various options will pay off. When you buy a home in Philadelphia, for example, you’re investing in urban property near shopping and other services where the diverse economy is stable. If you want to sell your home quickly, you’ll find that it has maintained or increased in value and represents a desirable purchase for Philadelphia homebuyers.

Even in a down economy, when real estate sales are slow and many homeowners are unable to sell their homes, there is likely to be a buyer for their well-located property. Real estate investors look for the best buys with the highest earning potential, and if you find yourself in the position of needing to sell your home for cash, a great Philadelphia location will appeal to investors buying homes in Pennsylvania.

Homebuyers who do their research and understand the importance of location are the ones who will get the best value for their money, be able to resell the property quickly, and best of all, enjoy the quality of life that comes with a great location.