Factors to examine when evaluating a neighborhood
November 8, 2011
When prospective home buyers are searching for their new property, it is a difficult process. The need to think ahead and consider not just current needs and desires, but also the likely situation 5 or even 10 years down the road, complicates the search significantly.
While plans and circumstances can always change, households can determine their general goals, consider the likelihood they would wish to move again in the near future and make a more informed decision based on that information.
Practical matters
Location is always important. It is the one fact about a home that cannot be changed through any amount of time, money and effort, so selecting a well-located home is one of the factors that takes up much of home buyers' attention. It also determines the cost and length of commuting and other travel.
Price is another factor. The initial cost of a home is a limitation on the
available choices, but more important are the costs over time. Homeownership requires a certain investment in maintenance and care, as well as long-term mortgage payments and property taxes. Even if these expenses are affordable, a family not planning to stay in an area for too long may prefer a less expensive home that allows greater saving for the future.
Culture and family
While the financial situation is relevant, it is generally secondary to
determining whether the home buyers will be happy in a neighborhood. The question is not only whether they want to live there now, but whether they will in a few years. Moving between homes to often is expensive and exhausting, so it is important to think ahead.
Because of that, the area's culture may be the largest factor. Before deciding to settle in an area, home buyers should learn who lives there. For example, a young family would likely prefer a street with other families on it, providing opportunities for children and parents to engage with their neighbors socially. This may be important enough to justify accepting a smaller home or slightly less convenient location.
Alternatively, a household might want to be near the center of town in order to easily access recreational destinations, or choose a location based on proximity to a child's school or an adult's workplace. One thing to check is whether the neighborhood holds any social events or festivals.