Buying or selling a condo for the best price requires research and consideration. One thing that drives people to a particular location is the school district and its ratings. Interestingly, whether you have children or not, school ratings can affect the price you pay or receive in a condo sales transaction. What’s more, the number of buyers who make school ratings a part of their decision is increasing year by year.
How High Is High Enough?
Buying a condo in a great school district makes sense for most people. However, when looking at the school districts, what rating would be high enough? The best approach is to make cost comparisons.
For example, if a condo in a district with a 10 rating is far beyond your budget, you might still be happy with a more affordable home in a district with a slightly lower rating.
Also, consider how important the school district is for you. Ask yourself:
- Do I have children now?
- Do I expect to have children while I live in this condo?
- Do my children have special needs that only an outstanding school will meet?
- How long do I plan to live in the condo?
Of course, it would be great to have everything you wanted in one condo. In some cases, you might be able to do that. However, if it isn’t in your budget to have the best of everything, you can set priorities and choose the school district and condo that are right for you.
Condominiums offer many benefits for home buyers. Condos may be ideal for those who want more affordable housing options and fewer maintenance requirements. No matter why you feel drawn to condos, remember to check the school ratings. Here are a few ways school ratings can make a difference to buyers.
Buyers who have children in school or plan to work in the school district often look for the most affordable housing in that district. There may be many condos for sale at lower prices than individual homes. By considering condos, they allow themselves more options within their budget. For instance, they can now consider downtown Nashville condos that might not have been on their list before.
Offsets Cost of Private School
Private school costs can add up quickly. Most parents have to make difficult choices to get their child in the private school of their choice. What is the answer? For many parents, buying a condo is the most logical choice. They get a lower price on their home, and they can put that savings into paying for their children’s education.
Those preparing to sell a condo should consider the impact the school ratings will have on the sale. Otherwise, you might give up the condo for less than its worth. Discuss the school rating with your realtor to ensure this value is factored into the price.
Increased Value at Sale Time
Suppose you bought a condo within a highly-rated school district. However later, when you prepare to sell, the school ratings have increased. In that case, your condo is typically worth more. In fact, the New York Times reported that economists say a 5 percent increase in test scores typically raises property values by 2.5 percent.
More Interested Buyers
When you sell a condo in a school district with high ratings, the pool of buyers interested in your property gets larger. Even buyers who don’t have a family member in school might recognize the benefits of living within an excellent school district.
Selling a home can take a very long time if there is little demand for homes in your location. However, if your condo is in a highly-rated school district, the sale could happen much quicker. It is not uncommon for condo owners in outstanding school districts to have several bidders and significant competition when they sell.
Condo owners also get benefits just by having their condo. It is an investment, so watching the school ratings over the years allows you to estimate your home’s future sale price. In addition, you might choose to use the equity in your condo for a loan or a personal project. With higher-rated schools, your condo has more value, so it’s a greater asset than before.
What About Low School Ratings?
Condos in low-scoring school districts usually have other challenges as well. Here are some of the difficulties in owning a condo in such a neighborhood.
- Lower condo values
- Fewer neighborhood amenities
- Living in an area with more renters than owners
How Important Is a School Rating?
Remember that each condo has its own value. The low or high school rating is only one factor. So, consider it. Decide how much education means to you and your family. Weigh the financial aspects of the sale or purchase. Then, you can make a decision based on all the facts and your personal priorities.