When it comes to buying real estate, location is everything. A great location in a “hot area” can make all the difference. I’m sure you’ve heard the saying, “Location, location, location”, and that’s especially true when it comes to real estate. Being able to afford something is one thing, but being able to maintain it and see a good return on your investment is another. For many people, buying a home is something they have badly wanted.

There is nothing more important when investing in real estate than location. Location is the number one reason to purchase a property, and the number one factor in real estate appreciation. So why is location so important? In this article I will address four main reasons why location is vital for any real estate investor and in turn these reasons should help you to identify great locations for your investment properties.

Reverse Engineer the Future of the Neighborhood

People need to stop looking at the current status of the neighborhood and start paying attention to the future of the neighborhood. This is what I call reverse-engineering the future of the location you are buying a home in.

I want to show you how to properly analyze neighborhoods, so you can make certain buying real estate will be a profitable endeavor. Buy this home now and the reward is exponential. I’ll show you how much area will be developed around this property in the next 5 years.

One of the smartest people I know once said, “Don’t buy in a good or bad neighborhood, buy in a neighborhood that you can see the future of.” This statement is so incredibly true, and so very important as well. I’m not going to try to make claim to be smarter than this person who came up with this comment, but instead I’m going to say that my goal is to convey how important it is to buy in a neighborhood that you can see the future of.


Even buyers without kids will often consider the quality of the local school district before buying a house. Why? They want their home to increase in value after they buy it, and a good school district boosts home prices.


Now you know that a good school district can have a significant effect on a home’s value. But how do you determine which public school district a home is in? The easiest way is to log onto Realtor.com. A home’s listing will include a tab for nearby schools. Open that, and you’ll see the public schools located near a property. If you click on the schools listed, it’ll bring up additional information about them, including the public school district of which they are a part.


Before you buy a house, be sure to carefully take into consideration the nearby school district as this can affect how well your home sells in the future.


Time is the most valuable asset in the world, and this is why people will always pay to save time. To be within a twenty-minute drive of work is a factor when choosing the location of a home. This is why the areas close to highways, trains, or other means of easy transportation always seem to appreciate faster than areas farther away.

If you buy a house in an area where there is no public transportation, for example, then you will have to commute by car every day. This means that your time is spent not only on the road but also looking for parking spots and paying for parking fees in some cities. This is why the areas close to highways, trains, or other means of easy transportation always seem to appreciate faster than areas farther away. The best location for easy transportation is near a major highway or public transportation.

Local Amenities

Local amenities have a direct impact on real estate prices in the area. Grocery stores, restaurants, shopping, entertainment, are some of the top amenities people are looking for when buying a home.
Buyers want these amenities within a 5-10 minute drive and poeple love the idea of being able to walk to work, or to the grocery store, restaurants, and other local amenities. If the location of the home you’re buying is within a few miles of most of these amenities it will help raise your property value.

How Does Location Affect Values

The most desirable home locations are the greatest determinants of home values, so when you’re looking at real estate make sure you’re also considering location. Always ensure that your real estate agent take you to all of the best neighborhoods, as prices in these areas will always be higher than those in other neighborhoods.

Land is a finite resource, so this means that there is not as much available land for building new homes or apartments as there used to be—which is why location has such a great effect on home values.

If you’re looking to buy a home as an investment property, location will always be your number one priority because you want appreciation and rentability. The better the location of your property—the easier it will be to rent out and get more money per month—and the more likely it will appreciate in value over time.

What's More Important Location or House?

In the end, it’s a matter of personal preference. If you already live in an area and know it well, it might be easier to negotiate a deal on a home that offers you everything you need. There are certainly exceptions, but unless you’re buying your first home in an area you don’t know well, location is probably more important than the features of a house (at least as far as location relates to price). You should consider what your top priorities are when it comes to determining where you want to live.Whether that search leads you in-state or out-of-state depends on what’s most important to you. Just make sure that before making the move, the new location will be right for your needs and desires!


The decision to buy property is a big one and should be left to the professionals. I can help you locate what your home might be worth, based on comparable homes in the area. The other information I can provide will show you if the homes in the area are selling, and for what price. If you decide that you do want to sell your property at some point, we can also assist you with this process. Whether your selling a house or land, call me today to find out how I can help you make today’s property transaction a success for you.


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