In a recent article this month, Money Magazine listed five new rules for home buyers shopping in today's sagging housing market. Rule #4, "Don't buy cheap; buy good schools," has been a long standing convention that home buyers, regardless of a bright or dismal housing market ought to follow.
Grade A schools
While foreclosures are skyrocketing in areas such as Stockton, CA and Las Vegas, NV buying cheap won't always get you the best deal in the long run. "When you buy a house, you're also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn't afford...Prices and quality of life could both decline further," according to Money Magazine.
The article suggests a buyer's best tool to measure the quality of life in a neighborhood is through its local schools. Communities that have highly rated schools fare better during a housing downturn. When I was growing up, I remember my parents having to decide between two ranch-style homes they both really liked. My mother tells me that while one of the properties was larger and about $15,000 less than the other, they went with the smaller more expensive home because of the school district. Their agent at the time told them the home would appreciate more in value because the local elementary and high school were ranked among the top in the state. My parent's decision eventually paid off when they sold the house after I graduated high school.
Do your homework
Mark Nash, a real estate author and broker based in Chicago, says to get better insight into the areas local public schools, you should make an appointment to tour them and meet the principal. Nash also says the best way to rate a school is by researching their test scores, student-teacher ratios, average class size and special-education classes on community and school board Web sites. You can also read online blogs by parents whose children attend the school district you're considering moving into. Newsweek magazine recently ranked some of the countries best public high schools. I'd recommend checking out which schools are top of the class in the nation.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.
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