Homes within the boundaries of a higher rated public school district are, on average, 49 percent more expensive than the national median listing price and 77 percent more expensive than homes located within the boundaries of lower ranked districts.
“Homes located in high-scoring school districts attract more buyers, including both parents who want their children to go to good schools,” Nimkoff says, “and others who understand that a good school district helps protect a home’s resale value.”
Alternatively, a low-scoring public school can lower home values in its immediate vicinity
What Homebuyers Should Think About
While it may seem like the obvious answer is to choose a home in a high-rated school district, the truth is not that cut and dried. Not every home in a high-rated school district is going to be expensive, and not every low-rated school district is a bad place to raise your kids.
Buyers should explore the school districts where they plan to build or purchase their new home. Homebuyers should plan to visit the schools and personally to meet with administrators, if they’re serious about a particular area.
There is no denying that the quality of nearby schools can impact the price of a home. But while this fact has always been somewhat of a given in the real estate industry, recent statistics now demonstrate just how much of an impact school quality has on real estate.
Many home buyers are willing to pay more for good schools and are even willing to trade bigger and better homes to access quality school systems.
People are Willing to Pay More For Good Schools
Realtor.com surveyed home buyers to determine how they viewed school performance as a part of their overall buying strategy. What they found in their study showed that a surprising number of people are willing to give up things to get within the boundaries of a good school district.
They found that for every five buyers, one buyer would be prepared to give up a garage or bedroom for a good school.
They also found that one buyer would even settle for a smaller home for every three buyers surveyed to get access to a good school. And over half of those surveyed said they would sacrifice nearby shopping options for a better school.
Beyond sacrificing things in their home purchase, buyers were willing to pay more money for a home in a good school district. One out of five of those surveyed said they would pay between six and ten percent more for a home – and one out of ten people surveyed stated that they’d go even higher, paying up to 20 percent more for a home with access to the right schools.