A big factor in the value of residential real estate is the rating of the school district where it is situated. Properties located in prestigious districts can sell for more than comparable homes in less desirable districts. Before you buy a home in a new location, it is of vital importance to investigate the school district.

Home Price Levels Are Influenced by School District
Many real estate agents say that the school district where a home is situated is a key driving force that moves price levels of homes in certain areas. Although it has not always been so, with increased sophistication of most buyers in recent years, the market has acted to ensure that homes in higher quality districts sell for higher prices than similar homes in other districts.

It Makes a Real Difference
The difference caused by the school district is no small matter, nor is it a textbook abstraction. Property situated in prestigious districts can be priced at up to 30% more than similar homes in other areas. If you look at an median price for a single family home at around $220,000 or higher, the price difference is significant.

Buyers Can Be Picky
In previous years, home buyers were more concerned with such factors as the property's nearness to city centers, places for nightlife or entertainment, shopping convenience, and possibly aesthetic attributes such as having nice mature trees all around. Now, savvy buyers are more concerned about negative factors such as being located in a school district that is less desirable, where the per capita education spending and student scores are low. Homes located in such districts may well be difficult to sell if the homeowner chooses to move; the values of these homes tend to stay lower.

In some areas with the best school districts, buyers bid up the prices of homes in order to get in. This can cause inflated real estate prices; or, in a slow market can let homes hold their value against a decline. This affects the listed price of all other homes in the area as well, after the sale. Smart buyers get school reports and related data early in their search for a home. They know that this is a big factor in the purchase price of the home a significant factor in the price for which the home may be sold in a future transfer.

District Boundary Stability Is Not Guaranteed
Regardless of the state of the real estate market, any reason that might compel a buyer to purchase a home in a particular area adds to the value of those homes. Both real estate investors and home buyers alike have to realize that the bounds of a school district are subject to change at any given time, which can affect the value of the property by a significant amount. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim, with little notice. In the real estate market there is not very much that is certain and almost everything is subject to change.

Information furnished by Automated Homefinder, Colorado's Boulder home professionals.