When you're buying a new home you're first of all looking for a place to call home. You want room for the family, great neighbors and something that really fits your lifestyle. Another important consideration is to move into a neighborhood on the way up, giving you the chance to see your investment increase in value over time.
Yahoo Finance recently published an interesting story that few people have a better knack for picking out neighborhoods with appreciating real estate values than Starbucks. Those baristas must have Wall Street Journals tucked in their back packs. Zillow data shows living near a Starbucks means the value of your home is likely to increase in value. It also appears that Starbucks is predicting what will happen to neighborhoods and not just following the trends.
In 1997, an average home within a half mile of a Starbucks sold for $137k, not near a Starbucks the average price was $102k. Today the average home price is up 65% to $168k but homes near a Starbucks are up 96% to $296k.
The fact that most of Starbucks 16,000 locations are in urban areas may mean different numbers then you could expect in West Michigan, but it proves an important point. All kinds of outside factors can effect the future value of your home.
A University of Chicago study showed having a home within a half mile of a Wal Mart is likely to increase the value of your home by 1-2%. Yes, a Wal Mart! Nearby amenities are an important indicator of a great area to live in.
Walkability is a desirable for many home buyers. A study done for CEO's for Cities shows walking distance to schools, parks, stores and restaurants can increase home values from $4K-$34k. This is part of the appeal for people that live in central areas of Holland, Grand Haven and Zeeland.
While you may not be able to control what happens down the street, the easiest thing you can do regarding home values is to go for trees. A University of Washington study shows having mature trees anywhere in your yard will increase your home's value by 2%. Bonus for trees in your front yard with increases of 3-5%.
There are a lot of considerations for home buyers. If you're in the market for a new home, I'd be happy to be your advocate and provide you with knowledgeable advice. As a matter of fact, I'd be happy to meet you at a Starbucks to talk things over! ~ Jim Barry, REALTOR 616-283-3026.