Houses that are near schools are attractive to young families. Not only does it make you feel safer, but the placement will likely be convenient in the future. You may walk your child to school, instead of sending him on a bus or driving him miles away. School placements are also a component that home owners without children look at, because there is the perception that these homes hold their value longer.
Schools do generally make your property more valuable. In some cases, values increase when a new school is built in the neighborhood. This makes for a larger profit for homeowners that desire to sell their homes in such areas.
However, there are a few variables that can decrease your home’s value, even when you live next to a school. This occurs when you live next to an older school. Even though the neighborhood might be safe, property values are likely much higher next to newer schools.
Property values also decline if the students at the school do not do well academically. If students score low on tests, then the school gains a bad reputation. This in turn decreases home values in the surrounding area. You can help combat this effect by getting involved in the neighborhood or at your child’s school by pushing for extra funds and programs to help the students.
Living near a school can end up being a Catch-22 situation, particularly if the school declines in student production. A school can help you determine where to buy a home, but should not be the sole factor in your decision. Real estate is an investment, but there is no guarantee that your house will increase in value if it is near a school.