A Guide To Understanding Neighborhood Property Values

Posted on: 6 October 2021

When you're interested in purchasing a new house, the neighborhood that the home exists in is every bit as important as any other part of the process. Understanding neighborhood values allows you to make the best real estate purchase both from the standpoint of your financial life. It takes some research and the help of a professional that can assist you with any transaction that you're trying to make. The tips below will help you get started with understanding neighborhood values.

Look up neighborhood values for anywhere you'd like to move

When you work with a real estate agent on finding a property or making improvements to your current property, they can give you quality information on neighborhood values. This way, you'll know whether or not you're investing in an area that is poised for growth or decline. Knowing neighborhood property values directly affects each house, which makes this information a fundamental part of your real estate portfolio. 

Make sure that you're keeping tabs on your property taxes, which are levied by your local municipality. Your town or city will issue a tax bill each year for any money that you own once you take ownership of the home. They consider the value of individual homes when calculating property values, in addition to property values in the surrounding zip code.

Visit the neighborhood and understand the variables that dictate property values and your quality of life

It's important that you spend some time in the neighborhood to get some qualitative reference points that give you an idea of how a neighborhood property is increasing or declining in value. If you're seeing businesses open up left and right, particularly big box stores, it's an indicator that several developers are invested in bringing revenue and jobs to the area. Conversely, you should also make note when you see commerce drying up in an area, businesses closing, or several people selling their homes. 

Things like the quality and accreditation of schools, proximity to entertainment and attractions, ease of travel, and nearby developments and growth potential, all play a role in the property values of the neighborhood. 

Get an appraisal for any property that you own or are planning to purchase

The best way to get current information and a forecast about neighborhood values is by calling in a property appraisal professional. These appraisals will allow you to find out not only how much your home is worth, but also key indicators of where the neighborhood is headed in terms of value and equity. Getting a property value can cost you $300-$450 or so. 

Follow these tips to get help with understanding neighborhood values.