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Research On How Parks And Other Amenities Increase Home Values

By
Real Estate Technology with Home Junction Inc.

More and more research is coming out that talks about the increased dollar value of homes according to amenities that are located nearby.

Experts said several studies support the notion that living near a park, for example, increases homes by 8% to 20%.

Here are some statistics from the University of Washington:

  •          A home fronting a park or adjacent to one is 20% higher in approximate value.
  •          A home in a city located within one-quarter mile of a park is valued on average 10% higher than other homes.
  •          A house two to three blocks from an active recreation park is 10% higher in price on average.
  •          Houses near just a cleaned-up vacant lot can be 17% higher in value.
  •          Residential areas near greenbelts showed a significant 32% boost in home value.

Coincidentally, trees and wooded areas also boost values:

  •          Good tree cover in a neighborhood resulted in a 6% to 9% increase in value.
  •          Mature trees in a high-income neighborhood boost prices by 10% to 15%.

Yes, even living near a Walmart helps.

Research by the University of Chicago found that living within a mile of a Walmart could increase home value by 1% to 2%. Even closer, add another 1%.

The study only focused on Walmart but one could probably assume a Target, Whole Foods, Starbucks or a large retail center nearby would have the same effect.

Use geocodes to integrate amenities with website

One way to drive home the point about these amenities is to add geocode software to your website. With this map-based functionality, you can show where amenities are located in relation to a listing.

The code pulls in the MLS listing and then pulls up local businesses nearby.

Use real estate mapping tools to show the amenities in list form.

Or display those amenities on a map integrated with MLS listings.

For example, say Mrs. Stretch is a yoga fanatic. An agent can show her how the home she is considering is located just one mile from a popular yoga studio.

Or, perhaps Joey Mulligan loves to golf. Don't just tell him the area has great golf courses, use the map integrated on a website to show him all the golf courses that surround this property. Visual displays are proven to have a higher impact on consumers.

Providing this functionality is also a way to impress potential listings. As you know, most people have high expectations when pricing a property.  An agent can support their pricing by promoting all those juicy amenities near the property.

Personally, I remember one home I purchased I later found out was very close to a 65-acre park, the largest in the county. That park has hiking trails, biking trails, kayaking, tennis and several ball fields.

Before the sale, I was involved in lengthy, back and forth negotiations for the property because many repairs were necessary. But in retrospect, if I had known that big beautiful park was so close, I would have definitely paid more and closed the deal quicker.

Sometimes it's hard to justify the price a homeowner wants for their listing. The neighborhood can help.

There is plenty of research out there to back up the value of local amenities, whether it's a park, a Walmart or a big open field with trees.

Note: Here is a link from data technology company Home Junction if you are interested in learning more about how to use geocodes and real estate mapping tools to display points of interest on your website.

Comments (3)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Robert. Take advantge of those things we take for granted. Thanks for the tip! Enjoy your day!

Nov 01, 2018 04:19 AM
Michael Clancy
Keller Williams of the Lowcountry - Bluffton, SC
Seller Rep, NAR Green Designation

Great...now I have to add geocodeing to my website. Lol. Thanks for the tip. I have been doing this with Google maps, how nice it would be to just have it integrated.

Nov 02, 2018 08:11 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Robert and Welcometo the Rain where we all learn from each other and help each other,  Will be looking for your blogs now.

 

Nov 04, 2018 08:34 AM