Test scores boost housing prices, reduce foreclosures

How important is a school district to your homebuyers?

Very important; (86%, 36 Votes)
Marginally important; or (12%, 5 Votes)
Insignificant. (2%, 1 Votes)

Total Voters: 42

When did you last check the test scores in your school district? Good schools are a benchmark of desirable neighborhoods, and high-rated school districts have fewer foreclosures than low-rated districts.

The payoff? Higher home values. Purchasing property in a high-testing school district means sustained high property values and greater resale value down the line.

This pricing difference is especially marked in metropolitan areas. Nationwide, homes located in urban public school districts with the highest test scores sell on average for two times as much as those homes located in school districts with the lowest test scores — a $205,000 increase per home.

High home values and low foreclosure rates in good school districts likely stem from high income levels supporting the district’s coffers, and the desirability of homes located in good school districts.

first tuesday take

Any agent worth their salt will quickly tell you, location, along with price and time of purchase, make up the three inter-twined factors influencing a prudent buyer’s decision to buy.

Further, a good school district drives property values higher, and thus plays a role in increasing property taxes which go towards better infrastructure. After schools, buyers look for other local amenities, including a cultural center, public transportation, recreation, parks, police/fire stations/libraries, fairs and all sorts of local services.

Since location is a commitment, one significant step an agent takes to develop a powerful career is to get involved long term in the public institutions that comprise their local community. Whether through supporting the school district, advocating progressive zoning laws, volunteering at community events or simply becoming a regular at the local hot spots, taking ownership to the success side of the community will boost an agent’s reputation and influence.Instinctively, vigorous community involvement allows you to speak confidently as an insider about the environments your community and each neighborhood have to offer buyers.