7 Reasons Homebuyers Should Prioritize Location, According to Barbara Corcoran
When it comes to real estate investing, "Shark Tank" moguls like Barbara Corcoran will emphasize the importance of location, location, location. Choosing the right spot can make or break your investment, so you might want to listen to someone with decades of experience and a net worth of roughly $100 million, because Corcoran knows what drives property value.
Her golden rule? "Buy the spot, not the space." You can always renovate a home, but you can't change its location. Before you settle for a bigger house in a less desirable area, discover why location should be your top priority with these seven expert insights.
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1. Permanence
"You can renovate a house, but you can't move the land," said Chris Wands, sales associate at Douglas Elliman Real Estate in South Florida. "Barbara Corcoran is absolutely right -- location is the one variable you can't change."
"Any house I ever bought, I bought the spot, not the space," Corocoran said. "You can control the space, but you can't control the spot."
A dated kitchen or tired flooring can be reimagined, he said, but you can't relocate a property to change its view or offer location-specific benefits.
2. Long-Term Value
More than just a home, Wands said, real estate is an investment.
"Homes in prime locations tend to appreciate faster and hold their value better, even during market corrections," he said. "It's why savvy buyers prioritize 'where' over 'what.'"
3. Local Lifestyle
The neighborhood where your home is located guides your daily life, Wands said. This might include access to top-notch dining, cultural attractions, nature or general walkability.
Consequently, he said, people often trade square footage for a neighborhood that feels like home and allows them to enjoy their preferred daily rhythm.
4. Resale Potential
Even when buying a home, it's important to consider how easy it could be to sell when the time comes. Properties in desirable locations tend to be more competitive and command higher premiums, Wands said.
"You can stage a space beautifully, but location speaks for itself -- and buyers listen," he said.
5. School District Mapping
Unfortunately, not all school districts offer the same quality of education. Consequently, it's not uncommon for buyers to base their entire search around a specific school district, explained Holly Schaefer, a realtor at Corcoran Icon Properties based in Marin County and Sonoma County, California.
Therefore, even if you don't have school-age kids, it can still work in your favor to opt for a home in a good school district, as it could offer higher resale value.
6. Insurance Rates
If you take out a mortgage, you'll be required to have homeowners' insurance. However, certain locations are much more expensive to insure than others -- including Sonoma County, where Schaefer works. According to her, sky-high insurance rates are not only bad for buyers, but bad for sellers.
She said, "It actually knocks some buyers out of the running completely for a home they could otherwise afford."
7. Zoning and Tax Obligations
Schaefer noted that city and county limits can have different zoning and tax obligations. This can even happen on the same street, where one side is within city limits and the other falls under the umbrella of the county.
She said this can impact both your wallet and lifestyle, as it may determine the size of your tax bill, access to utilities and services and ways you're permitted -- or not permitted -- to develop your land.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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