You will be blessed and sprankled with the fame and luck close to a highly desirable neigborhood such as Saratoga and the school district especially when you resell your home when it is a seller's market in future ! Remembering though it is still the real thing when you price the listing in future.
How can anybody not like to live close to the best school district in U.S.?
Richard K. Ho, M.D., MBA, Realtor. ePro
6455 Almaden Expwy., Suite 98
San Jose Ca 95120
Please visit: http://www.DrHoRealty.com
But only you can make that call since no one else knows your investment and money rules. Having said all that, even most public schools are relative. We have families in the Los Gatos and Saratoga school districts who are not happy with the schools.
So, it all depends on how much money you are willing to spend for the right school district. We live in Los Gatos school district, but still decided to send our little one to private school!
I had a listing once that was in a very strange pocket of Los Gatos. It was in a PUD, It was actually zoned Los Gatos, Paid property taxes to Los Gatos, (like you are comparing was not in Los Gatos Schools), but here's the strange part, because a small number of homes in this PUD was a cul-de-sac it's address was San Jose for mailing purposes only. If that house had a Los Gatos address the seller would have sold much quicker and for more money. The only difference within the PUD was a mailing address.
Not everyone buys for address because after all you are going to be living in that home and it must meet your wants and needs, within your desired budget.
I would be more conservative in my spending and buy a cheaper house when they are in essence extremely comparable. I can not see making a higher monthly payment and paying more in property taxes for nothing.
That part of Saratoga is "entry level" whereas the nearby San Jose neighborhoods are not. Which would you rather have - a modest home in a pricey Saratoga, or a moderate home in West San Jose? You are right that the schools are the same, so if you're only buying it for the schools then your answer is easy to sort out: buying in San Jose will save you bundles when you purchase.
If you are buying the home for other things too, such as prestige, a sense of belonging to a smaller city rather than much larger San Jose, then you will see value in living in Saratoga beyond just which schools you get.
What about resale value? You might ask your agent to chart how homes similar to the one you like were selling in 2000 and in 2005 and now to see which area "holds up" best.
I'll attach a link to a recent post I did on the Saratoga real estate market as you may find this helpful.
Better is a relative term based on what you can afford, desire and your goals on home ownership so it is hard to judge this. Grace gave you good advice, I would add that generally speaking better neighborhoods get better prices, so I would tend to want to purchase in the better neighborhood, also you would look for a home that is not the best home on the street, The home in Saratoga that you mentioned is a fair value for the area. As I have said your goals determine what you should buy.
As grace pointed out get with a realtor that knows your areas of interest and work out the best way to get the most value for your money.
Feel free to contact me with any questions.
Aside from the fact that there is "value" in the Saratoga city name, city services and location, the price of this home at $789,000 is neither--in my mind--overpriced or unusual for the area. In fact, it's a modest price for a modest home.
While you can certainly find other homes in the neighboring areas with similar amenities and similar lots in the same school district, you will be buying in San Jose, and that does account for a slight reduction in value. For those who live in Saratoga, dealing with their City's service providers and town hall can be worth the slightly greater cost as opposed with the prospect of living in San Jose with its services and city.
Work with an experienced real estate agent to help you determine pricing for this home and for any others for which you are interested. Good luck!
Grace Morioka, SRES
Area Pro Realty
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