How Proximity Affects Your Home Value
Jethro Seymour
Sell your home faster and for more money with the Seymour Real Estate Team. I started my sales career in 1994 with publishing and media sales...
Sell your home faster and for more money with the Seymour Real Estate Team. I started my sales career in 1994 with publishing and media sales...
Location, location, location!
You’ve definitely heard how important this is in real estate — and that's because it's true! Location is a crucial factor when it comes to the value of your home. Not only does what part of the city you are in matter but what is physically near you can actually help or hinder your property value. We put together a list of the most important proximity factors that will increase as well as decrease your home value.
Factors that increase home value
Schools
Homebuyers who have children are willing to pay more to live in a home that is closer to schools, especially ones that have a good reputation and high academic scores. For local school rankings, click here.
Entertainment
In most cases, homes that tend to be in walking distance or a short drive from entertainment opportunities like movie theaters, parks, art galleries, and city cultural ammenities usually sell for more money than homes farther away.
Shopping
Homes with close proximity to grocery stores, local shopping, and great restaurants usually sell for more. Being close to a popular grocery store or a shopping mall has shown to have a 5% premium.
Outdoor Recreation
Having great scenery and access to outdoor recreation like the parks, ravines, and Lake Ontario usually increase a home’s value.
Sought-After Views
Depending on where you live, things like iconic city views, private ravine views, and picturesque streets tend to increase value and even help sell your home faster.
Public Transit
Canada is spending billions of dollars on new public transportation infrastructure, and according to this Financial Post article that has had a positive effect on property values.
Factors that decrease home value
Industrial Plants
Aside from being an eyesore, toxic emissions released from industrial plants will not only decrease the air quality but the value of your home, but properties located adjacent to certain kinds of facilities or infrastructure deemed undesirable.
Busy Areas
Although being close to the 400 series highways, railroad tracks, Pearson airport, and busy intersections is convenient for when you need to leave, it can be pretty noisy when you are at home which could impact the value of your home.
Crime
Areas and neighbourhoods with higher crime rates tend to decrease home values. This article explores some of the reasons and consequences.
Low-Rated Schools
As we said above, the top-rated schools are a big priority for some home buyers so homes located in areas with a low-ranking or closed down school has resulted in a lower property value.
Cemeteries & Funeral Homes
Whether you believe in ghosts or not, the thought of living near a cemetery or funeral home is a bit eerie. According to Realtor.com, homes with a cemetery close by could be priced 12% less than homes in other nearby areas.
Bad Neighbours
You may think that your noisy neighbour is just an annoyance, but bad neighbouring properties could be driving your home's value down. In fact, it could be as much as 5-10% according to this article.