If you have a family with children and are looking for a new home, schools play an important part in helping to determine where you want to live. Many parents look to school ratings as part of their home search, seeking for higher rated schools and homes for sale within those areas. School ratings have a strong impact on the vitality of neighborhoods, and the value of homes. Kids or not, anyone selling a home with higher rated schools nearby can often sell their home at a higher price.
RealtyTrac and its new parent company, ATTOM Data Solutions, has released their latest Schools and Housing Report, which highlights just how school ratings impact home values. The report findings show that just one highly rated elementary school in a zip code will have homes with higher values and greater price appreciation compared to similar homes in neighborhoods without a high rated elementary school.
For example, Palo Alto is known for having some of the best rated schools in the nation. Recently a 3 bedroom, 2 bath, 1,483 square foot home on a 6,000 square foot lot sold for $2,375,000. The area Elementary School had an API (Aptitude Performance Index) score of 953, the Middle school a score of 939 and the High school with a score of 920.
A similar home in San Jose, with 3 bedrooms, two baths, 1,464 square feet and a 6,156 square foot lot, sold for $1,104,000, more than 50% less that the home in Palo Alto. The schools nearby this home were rated well, but less than in Palo Alto, with the Elementary school scoring an API of 827, the Middle school at 790 and the High school at 703.
While there are other factors that determine a home’s value, school ratings have been shown to make a big impact on residential properties. According to the RealtyTrac Report, 1,661 zip codes had at least one school that was highly rated, while 2,774 zip codes did not. The average value of homes in the zip codes with better schools was 77% higher than in the neighborhoods without good schools.
If you are on the search for a home with good schools and are concerned about being priced out, keep in mind that scores change over time. Take into account how old your children are, if you have young ones for example, and find a home with a great Elementary school, but the High school is not performing as well, within 10 years, the school could see improvements. School API scores and ratings from organizations such as Great Schools are one neighborhood aspect to look for before you buy.
If you are planning to sell your home, and highly rated schools are in your neighborhood, this is one thing worth including on your market listing. When you are ready to buy or sell your home, we at Haylen Group are here to help you with all of your real estate needs! As your buyer agent we will strive to work together and give you the best support we can. Call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.