Unveiling the True Essence of the "Location, Location, Location" Principle

Posted by Kim Jacobs on Monday, November 6, 2023 at 3:27:24 PM By Kim Jacobs / November 6, 2023 Comment

When it comes to purchasing real estate, whether for personal use or investment, the phrase "location, location, location" is often cited as the key factor. This widely-recognized rule highlights the significance of selecting the right location when buying a property. A prime location not only increases property value and appreciation rates but also enhances quality of life.

Who Coined the Phrase?

In my quest to uncover the origins of this famous buying tip, I was surprised to find that its true source remains unknown. While some attribute it to Lord Harold Samuel, a British real estate magnate, The New York Times refuted this claim by discovering an ad in the Chicago Tribune in 1926 that first utilized the phrase. Regardless of its origin, this expression will forever remain one of the most important considerations in property purchase.

Factors to Weigh In

Several factors should be taken into account when selecting a property in the right location. These include:

Proximity to work, schools, and loved ones: Consider the distance between the property and your workplace, your children's school, and other places you frequently visit.

Safety: Assess the neighborhood's safety by utilizing tools like NeighborhoodScout to gain insights into crime rates.

Access to amenities: Evaluate the property's proximity to grocery stores, gyms, salons, shops, healthcare facilities, parks, and dining establishments.

Transportation: Consider the availability of public transport, nearby highways, and closeness to the airport.

Future development: Determine if any significant construction projects are in progress in the area, as they could impact the desirability of the location in the future.

The Property Itself

Once you have identified the right submarket, several other location factors come into play when evaluating a potential opportunity.

Neighborhood: Familiarize yourself with the neighborhood, taking note of the homes' ages, whether there is a homeowners' association, or if it is a gated community.

Negative external factors: Consider any external elements that could adversely affect the property, such as nearby commercial buildings, traffic noise, or proximity to an airport flight path.

Sun exposure: Especially important in desert climates, the property's sun exposure will impact utility bills and natural lighting. North/south sun exposure is highly desirable in such regions.

Neighbors: Assess the pride of ownership exhibited by the neighbors surrounding the property. Untidy driveways or poorly maintained lawns can impact the desirability of your own home.

The Significance of Location

The importance of a property's location cannot be overstated or overlooked. Here are just a few ways in which it influences buyers:

Property value: Prime location significantly affects a property's value. A home in a sought-after neighborhood, close to desirable amenities, and within a good school district will command a higher price than a similar property in a less desirable area.

Investment potential: A great location can lead to substantial appreciation in property value over time, making it an ideal choice for investors looking to flip or rent out properties.

Quality of life: Your environment plays a crucial role in your overall quality of life. Choosing a property in a fantastic location ensures enhanced convenience and access to amenities, benefitting both you and your tenants.

Resale potential: If you plan to hold onto the property long-term, selecting the right location from the start proves valuable. A property in a strong location is more desirable to buyers, increasing the likelihood of a faster sale at a higher price.

The Takeaway

The timeless saying "location, location, location" remains an invaluable rule that should always be kept in mind when buying real estate. I myself have learned the hard way, ignoring this principle in a couple of instances, simply because I was eager to secure another deal. In both cases, I faced challenges in achieving my investment objectives due to neglecting this cardinal rule.

KIM JACOBS

703-395-4640

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kim.jacobsandco.com