LOCATION LOCATION LOCATION ~ What does that really mean to a Buyer or Seller?
Most of us have heard the expression, LOCATION LOCATION LOCATION dozens of times. But when it comes to buying or selling a house, what does that really mean to you, and what should you be aware of?
Recently I was contacted by a Seller who was excited to put one of his houses on the market. He lives in Texas, and he was tired of being an absentee Landlord. He had purchased at the top of the market and put tens of thousands of dollars of rehab into this property. When I went to do a CMA for him, all I could think of was who was his Realtor when he purchased the home since the Client knew he would not want to hold on to the property for more than ten years. He wanted to sell early because he was having a hard time getting tenants to rent for a reasonable amount because of the LOCATION LOCATION LOCATION.
I would have strongly advised him AGAINST ever having purchased this particular property to begin with as the home was separated from the Interstate by just a frontage road and a low retaining wall. Whether it was the front of the house or the back of the house that faced the Interstate, that is the very definition of LOCATION LOCATION LOCATION. This is a conversation a Buyer should be having with their experienced Realtor BEFORE the purchase if selling for a profit is ever going to be of interest to you. In this particular instance, the LOCATION LOCATION LOCATION of this particular home had a negative impact of $75,000 to similar homes just a half block away.
Some local subdivisions will have many similarities that will keep the home values in a general price range, but of course location in each particular subdivision AND condition will always affect the price. For instance, in Colorado Springs it is often the case that the higher up the side of the hill you go in any given subdivision, the more expensive the price will be. That is a good example of what LOCATION LOCATION LOCATION will mean to you if you are purchasing or selling a home. Whether it is hillside with views, backing onto the Interstate, on the water, next door to a junk yard or across the street from a school, the location WILL affect the price of the home.
There are other areas, like homes in Downtown Colorado Springs, where each street has it’s own uniqueness. The streets in Downtown Colorado Springs are so unique that LOCATION LOCATION LOCATION will mean tens, if not hundreds, of thousands of dollars. I can take one house and, if it was moved over one block, the same house would be worth $50,000 more. Two blocks and the identical house would be worth $75,000 to $100,000 more. Incrementally, each westward street Downtown would add value so that four to six blocks over, the identical houses are worth at least $250,000 more.
While everyone knows the expression, so often Buyers and Sellers fail to understand that it applies to them personally. You can change the condition. You can change the price. But you can’t change the location. LOCATION LOCATION LOCATION is an adage that really and truly needs to be kept in mind when you are looking for a property.