How Not To Pay Too Much For Your Home (Part 5 of 22)

#5 Location, Location, Location

It's the oldest maxim in Real Estate, everybody chants it, and it's true. A home's value is not determined by the home alone, it is affected by the surrounding homes and the surrounding neighborhood. Don't let your emotions determine your purchase. Think resale. The desirability and resale value of your home depends largely on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc.

When viewing homes take a careful look at the neighborhood and ask the following questions: How does this home compare to others in the neighborhood? Are yards fenced? Are there many children playing in the streets? Are front and backyards and the exterior of the homes properly maintained? Walk around the neighborhood and get a feel for the people living in the area. You may want to speak with a few neighbors to get their comments. If you like the community, carefully examine the home you like. Is it in character with the neighborhood? Having the largest home on the block probably means that the value of that house will go up more slowly, conversely the smallest home on the block may be harder to sell because it relies more heavily on the neighborhood holding up its value and many people are reluctant to pay a premium for the neighborhood.

Other factors affecting property value of a home include traffic, sounds, smells, zoning bylaws. Be objective. Don't rely too heavily on your emotions. Be sure you are completely satisfied with the neighborhood. If you choose a neighborhood with problems, you likely won't get as much as you hoped with it comes time to sell.

By Keith Vincent, Realtor, Calgary Alberta