Home value near school

Asked by Jay, Los Angeles, CA Sun Jul 25, 2010

I found a house to buy near a public elementary school with 400 kids. The issue is the most neighbors do not send their kids to this school due to the quality of the school. Most folks send kids to private schools. I do not have school age kids. I cannot check the noise/traffic level due to summer break (school is closed). I'm concerned with the value of the property....

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Bill Eckler, Agent, Venice, FL
Tue Jul 27, 2010
Jay,

There are any number of reasons why people are attracted to housing in or near school zones. These include:

1. increased police presence

2. personal use of school facilities

3. easy access for school programs

4. walking distance for smaller children

5. "Drug Free School Zone"

The fact that many people are drawn to live near schools would seem to serve to protect your investment not damage it.
1 vote
Deborah Brem…, Agent, Los Angeles, CA
Sun Jul 25, 2010
Hi Jay,
Since you can't check noise and traffic levels since school is not in session, you will have to do a little more due diligence on your own. Talk to neighbors about your concerns. Ask them what it's like being next to the school. What hours of the day/ days of the week are impacted, and how.
Ask your agent to prepare a CMA (Comparative Market Analysis) that points out the difference in value between properties near the school, and those further away. Proximity to school can reduce the value of a property up to 10%. It's very site specific and school specific, and it's important information to have before you consider what price you offer. It will be important at resale as well, as properties near a school take longer to sell, on average.
Also, check neighborhood crime statistics as well.
Best,
Deborah Bremner
REALTOR, 00588885
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/news
1 vote
Andrew Jones, Agent, Venice Beach, CA
Thu Jul 29, 2010
Hi again Jay,

As agents we can't comment on the percieved qualities or differences of schools and neighborhoods because of serious equal treatment and anti-discrimination laws. While this is a good thing, it can be frustrating for home-buyers who just want the best for their families.

On the subject of noise from any school, I've found that this can be a a very real issue when it comes to the value of a property. I've had a number of clients who won't even consider properties next to schools becauce it sometimes sounds like you're living next to a pond full of geese during school hours
0 votes
Lynn Le Glai…, Agent, Los Angeles, CA
Mon Jul 26, 2010
Hi Jay,

Being an LA school that is not popular among the local residents is forboding for any school these days as the district is looking for schools to close down. However, the school could have a rehabiliation and local parents might feel compelled to build a better school. that has happened at many elementary schools throughout LA and I can tell you that the local residents living across the street or behind or around the corner from the school were happy to find that their property values went up when the schools became desirable. I don't think elementary schools have that great an impact on property value becasue the children are supervised all day. It'll be noisy in the early mornings and at lunch or whenever children are on the yard, but the children probably won't be sitting on your stoop or vandalizing your sidewalk or making out in your bushes as the case may be if you lived across the street from a high school.
I say this after looking at comps of properties sold close to various elemetary school and a few blocks further--and for most part there seemed to be no substantial difference. In some cases it even seemed that being closer to certain elementary schools was a bit more expensive. of course, if yo live next door to an elementary school, you'll limit your buyer pool when it come to selling the property as not everyone wants to hear bells ring and children playing, etc.
Good Luck!!
Lynn leglaire
0 votes
Deborah Brem…, Agent, Los Angeles, CA
Mon Jul 26, 2010
David (and Jay)
It is based on 34 years of experience as a residential agent, viewing the same comparables that an appraiser uses, that allows me to evaluate the statistics and offer my expertise.
It is clear, as an agent in the trenches, what market factors come to bear on values. When you work in an area, you can look at prices and hear the feedback of real clients to know what affects value in their eyes.
Market value is based on the assessment of a willing buyer and a willing seller. Appraised value is a different valuation altogether.
While not minimizing the importance of the appraisal, it serves a different purpose than a CMA, which attempts to evaluate how a property is perceived by a willing buyer and a willing seller. You can then make use of these statistics to determine both offer price, and, as a seller, projected market time and value. Nothing is foolproof, and other market factors come in to play, as well. As I initially said, it is very property and school specific.
It is unrealistic to expect Jay to obtain an appraisal on a property he may not intend to purchase. It is, however, completely reasonable for Jay's agent to be able to prepare a CMA to assist him in the decision-making process.
Jay was not asking about "parks, golf courses, shopping centers/strip malls, major roadways, etc." He was asking how to ascertain value and noise/ traffic when the school is not in operation. His question was valid and clear. Jay, I know my answer will assist you.
Best of luck,
Deborah Bremner
REALTOR, 00588885
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/news
0 votes
David - Appr…, , Maricopa, AZ
Mon Jul 26, 2010
I would disagree with Deborah's statement that - "Proximity to school can reduce the value of a property up to 10%."

Regardless of where the market area is located, the market itself and market reaction dictates value and any increase or decrease concerning proximity to externalalities such as schools, parks, golf courses, shopping centers/strip malls, major roadways, etc. For any real estate "professionsl" licensed to determine "sell/purchase price" to put a specific amount of decrease (or increase) directly associated with schools, or any other specific externalalities seems to be more of a personal opinion and somewhat unprofessional and/or misleading.

Jay - if you are concerned about the effect on "value" - either current of prospective - you should consult with an appraiser, licensed to determine "value", who's territory includes the area which the property is located.
0 votes
Deborah Brem…, Agent, Los Angeles, CA
Mon Jul 26, 2010
I agree with Don that schools that are valued in a community can add substantially to the value of homes in the neighborhood. I know of several areas with sought after, high demand schools where families want to move in for the benefit of the school.
But we disagree about proximity. The bottom line is that even in those areas, properties sell for less near the school than those farther away from the school, and take longer to sell. Think of a target: even if you want to be "near" the school, you don't want to hit a bullseye.
This is a factor for resale consideration. You have no children, so you won't benefit from use of the school, and it sounds like many buyers in your neighborhood didn't buy to get into the neighborhood school. That's a red flag for resale value and timing, in my opinion.
Best,
Deborah Bremner
REALTOR, 00588885
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/news
0 votes
Don Tepper, Agent, Burke, VA
Mon Jul 26, 2010
As Deborah says, check with the neighbors. And particularly the folks who'd be your next door neighbors. Noise, bus routes, kids' walking paths can all vary block by block. So while your concern is legitimate, the problem itself may be substantial or non-existant.

And while I won't disagree with Deborah's statement that "Proximity to school can reduce the value of a property up to 10%. It's very site specific and school specific, and it's important information to have before you consider what price you offer," schools that are valued in a community can add substantially to the value of nearby homes. There's a fight going on right now near where I live about whether to close a very popular, but older, smaller, somewhat dated elementary school. See http://www.savecliftonelementary.org/ You'll see plenty of listings on the MLS with comments noting that the house is in the "Clifton school district."

So, talk to neighbors. Also, talk to your Realtor to get his/her feedback.

Hope that helps.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more