The Arlene Quirk TeamThe Arlene Quirk Team

Building Life-Long Relationshops One Person at a Time

Email Us ·
(570) 903-0910
  • Menu
  • Home
  • Search
  • Home Value
  • Communities
    • Milford
    • Dingmans Ferry
    • Shohola
    • Matamoras
    • Hemlock Farms
  • Sell
    • Home Valuation
    • Staging Tips
    • Sell and Make a Profit
    • 8 Steps to Selling a Home
    • Practicing Good Seller’s Etiquette
  • Buy
    • Mortgage Calculator
    • KW Mobile App
    • Get Pre-Approved
    • Home Buying Tips
    • 8 Steps to Buying a Home
    • How Much Can You Afford
    • Location, Location, Location
  • About The Area
    • Videos
      • Delaware River Activities in Pike County
      • Grey Towers In Milford PA
      • The Shops at Milford, PA
      • Waterfalls along the Delaware River
    • Pike County Courier
    • Pike County Dispatch
    • News Eagle Newspaper
  • Meet The Team
    • Bio
    • Our Listings
    • Client Reviews
    • Blog
    • Contact

Delaware Valley School District and Home Values

Delaware Valley School District and Home Values

Delaware Valley School District

Home value of homes in the Delaware Valley School District and the value of homes in general are determined through a complicated series of calculations roughly based on the cost of actual construction plus value-adds like proximity to shopping and other conveniences. The prices that other nearby homes have sold for in the past are also taken into consideration. Formulas are applied, mysterious algorithms are run.

In short, home valuation is magic and appraisers are all wizards.

Although the workings behind the curtain may be both intimidating and seemingly unpredictable to home buyers and sellers, there is one thing that we can say definitely can affect your home’s value is your school district.

The Numbers Have It

A quick twirl around the web turns up a handful of recent surveys and studies that all say essentially the same thing: better schools means your house might be worth more.

It’s interesting, though, that at least one study from the Federal Reserve Bank of St. Louis found that schools that were just barely below the average for quality had no influence on the homes where their students lived. These houses were priced based only on their characteristics, like having three bedrooms or a lot the size of a city block. On the other hand, higher-quality school districts increased each home’s price well above what the physical characteristics would have normally indicated.

The National Association of Realtors reports that 26 percent of all buyers chose their house based on the school district’s quality. However, among age groups prime to have children in the household, 40 percent of those under 36 years of age considered the school district an influential factor, as did 35 percent of those buyers 37 to 51.

The New York Times noted that “There are many factors in a home price, of course, but ecoDelaware Valley School Districtnomists have estimated that within suburban neighborhoods, a 5 percent improvement in test scores can raise prices by 2.5 percent.”

How Much More Will You Pay?

The problem with trying to price a home based on less concrete metrics, like school district quality, is that there’s someone else out there that also has an idea what that added value amounts to and may want to fight you for it. This year in the Dallas-Fort Worth, Texas metroplex, for example, homes were frequently being sold for more than their listed price because someone out there had to have that house in that location and right now.

But, you can still look at price trends for homes in a very general and national way to get a feel for the influence of school districts. Redfin did a huge study that included 407,000 home sales and almost 11,000 elementary school districts across 57 metropolitan markets. The study’s goal was to determine the average additional value brought to homes by their elementary districts.

Surprisingly, top-rated districts brought a whopping $50 per square foot extra when compared to average schools. That’s an extra $100,000 for a 2,000 square foot home!! The effect in California’s hottest markets was even more dramatic, with buyers paying up to $500,000 more for the best districts.

Compromises: School or Shopping?

When Realtor.com announced its findings from a back to school survey in 2013, a few surprising trends popped up. For example, buyers were more than happy to make major sacrifices in order to get their kids into the right school district. Of the people surveyed and indicated that school boundaries were an important factor in their search (90.53 percent), 42 percent would give up parks and trails, 43.96 would give up a bonus room, 50.6 would give up easy accessible shopping and 62.39 percent could live without a pool or spa.

Three out of five buyers said that school boundaries would definitely influence their buying decisions.

Breaking It All Down

All of this may sound quite complicated, but at the end of the day, it’s really simple. There are only so many houses in the best school districts, and there are more buyers to buy than sellers to sell. Since school districts are so important to many buyers, things like bidding wars may result, where buyers make above sales price offers, perhaps many of them, until someone is tapped out and a winner is named.

Their prize? The house that is now $40k over asking price.

It’s a snowball effect, really. Those way-over-asking-price homes end up being comparable homes when the appraiser comes around a few months later, raising the prices of all the homes around them. So, in a very real way, it can be said that your school district, provided it’s a good one and not merely average, has a massive impact on your home’s value.

Where Can You Go for Advice on Buying or Selling in Delaware Valley School District?

The Arlene Quirk Team in Milford PA, has over 30 years combined experience Listing and Selling homes in the Delaware Valley School District. Contact us today so we can guide you through the process of Selling your home for the best possible price or finding your Dream home.

Posted in: Buyer Tips, Seller Tips Tagged: Arlene Quirk, Delaware Valley, Dingmans Ferry, Milford, PA, Pennsylvania, Real Estate

Post navigation

« Lakefront Home in Milford PA
The New Spring Real Estate Market is Here »

Questions?

Contact Us

My KW Mobile App

Click to download my free app, and search for homes on the go! It couldn’t be easier to find your dream home!

© 2021

Copyright © 2018
The Arlene Quirk Team

Keller Williams Real Estate

Office Phone: 570-296-6400

500 W. Harford Street Milford, PA. 18337