When homeowners ask, “What determines my house property value ?”, the answer is always location. A property in a high-quality location will always be worth more, even if it is smaller or in poorer physical condition, than a beautiful property in a rundown location. Infrastructure improvements, demographic shifts, average income, political environment, and education all factor into the quality of a location.

Transportation improvements tend to correlate with higher home prices. When regions are making high-dollar improvements in their transportation systems, then demand for homes in that area will rise, and so will prices. The construction of airports, highways, and train stations, tend to indicate that a town has a good-looking economic outlook, which makes living in that town more desirable.

An area that is experiencing population growth may also have higher home values. If population growth in one town is outpacing growth in adjacent towns, then people are moving to that town for a reason. Since demand for homes will inevitably be higher, prices will be higher, in that area. When selling a home in a high-growth area, sellers should be able to communicate to buyers the reasons for purchasing a home in their location.

Growth in average income reflects favorably on a town. When average income is increasing, people in the town have more money to spend, and, as a result, more buying power. High income levels will translate into high home values, thanks to the high-income jobs which are usually behind those great incomes.

Political leadership is an often-overlooked factor in determining home values. Towns which are run by innovative, flexible, and entrepreneurial people will inevitably attract good things, and higher property values. Contacting the mayor’s office, or the Office of Economic Development, will provide homeowners and investors with a great deal of information about a town’s economic and political climate.

Home buyers will flock to a location that has good schools. In good school systems, students arrive at school, ready to learn; teachers and administrators care about what students achieve; and students tend to score higher on standardized tests. Parents may consult many good websites to learn about schools in a particular town, and to learn about student test scores at particular schools.

The location of a home has more influence on its value than any other factor. When a town is prospering, the jobs outlook is good, and population is growing, people will want to move to that town, and demand for houses will increase. If a home is in a good location, then homeowners will find a positive answer to the question, “What is my home property value?”.

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