There is so much to think about when choosing a home to buy: location, floor plan, property taxes, whether you will have any nosy neighbors poking around. If you have children, choosing a home in a reputable school district might also be at the top of the list.
But you might not realize that whether or not you’re a parent, school districts can play a major role in your home buying decision. Here’s what you should know about how school districts affect your finances when buying a house.
How to Determine How Good a School District Is
When evaluating a school district, there are a few things to take into consideration. Take a look at the quality, age, and facilities of the schools themselves. Look into how students perform on standardized tests. Check out the student-to-teacher ratio to see how much personalized attention the students receive. The amount of spending per pupil at the school will tell you how much of the budget is allocated for each student.
Most importantly, talk to people who have lived in the area for a while and have children enrolled in the schools. You may even want to schedule an interview with a teacher or administrator at the school. A good school district generally produces good kids. Not only are they academically inclined, but well-behaved as well. As such, areas with good school districts tend to be safer and experience less crime.
Great grades are not all that matter, though. Sometimes the schools that are ranked the highest are the ones with the most rigorous curriculums, and those can sometimes be overly stressful or overwhelming for children or adolescents. For more personalized recommendations, turning back to the community is always a good idea.
If you can, you should check out all of the district’s schools. While your child might be going to elementary school now, he or she will eventually be going to middle school and high school. You want to make sure that they are all suitable for your child.
Understanding School Ratings
According to the National Center for Education Statistics, there have been more than 98,000 public schools in the United States. Even divided by 50 states, that number can feel overwhelming. But each state has School Report Cards, which are federally mandated to be available to the public under the Every Student Succeeds Act (ESSA). These report cards are similar state-to-state.
Although the names of the sections may differ across reports, the information they provide typically is divided into one of five categories:
1. Demographics
This section provides information on the students attending the school. This might be enrollment numbers, teacher and staff information, information on racial or ethnic self-identification, economic standing, learning differences, family backgrounds, and more.
2. Academic Achievement
This broad category covers how students perform on state exams. ESSA allows individual states to set their own parameters for standardized tests. However, to make it easier to compare schools in a consistent way, this section also typically includes performance on nationally standardized exams such as the SAT and ACT.
3. College and Career Readiness
This information might be included within academic achievement, but is often in its own section. Performance in upper-level courses and on national standardized exams is strong indicators here, if they are not covered in in academic achievement.
4. Climate
The Climate section deals with school environment. Many campuses now implement student survey data, asking students their opinion on how high classroom expectations are or whether they feel as though their teachers care about them individually. On a broader scale, this section usually also includes safety and disciplinary information.
5. Accountability
Accountability, another ESSA term, is used to indicate if a school has been identified as needing additional support, and if so, what kind. Often, this information is indicated on the first page of the report, in the “Overview” or “Summary” section. Occasionally, however, this information is given a tab of its own within the report. The accountability score given to schools is determined by individual states, as are the plans of support moving forward.
What a Good School District Means When Buying a Home
If you are in the market for a new home you better be researching local school districts – it could mean all the difference for your family, whether you have children or not. Homes in the best school districts, on average, sell for higher prices than similar homes in less-popular school districts. A simple analysis might say that good schools are wholly responsible for this added value.
Here are four of the main reasons why the quality of school districts is something that you need to keep in mind when you buy your next home.
- Good Neighborhood
A good school district tends to equal a good neighborhood. Great location can mean safer neighborhoods, an abundance of places to eat, ease of access to transportation, proximity to urban, beach or vacation areas and amenities like public parks and services.
- Good Education
If you have children, the biggest reason to buy a home based on the school district is so you can provide them with a quality education. A good district will offer the best education for your children. This is especially important if you have children with unique learning needs. Some districts are more accommodating to children who need additional enrichment or learning opportunities.
- Home Value Stability
Even if you do not have kids, living in a good school district can help increase your home’s value over time. That is because neighborhoods with higher school ratings tend to have higher home values. Homes will go up and down in value, but an outstanding school district can make all the difference during a tough market.
- Higher Resale Potential
Real estate is by nature a venture that carries with it a certain level of risk and never comes with guarantees. While this is true, you do want to do everything in your power to make sure you get the best that you possibly can for your family. Home buyers should think about resale and building home equity when selecting their new home- even if they do not plan to move in the near future.
After all, plans change unexpectedly. You may think a house is your “dream home” and plan to live there forever, but plans change. If you find yourself in a position where you need to move in a few years, you want the resale value to be high.
School Districts Matter Even If You Do Not Have Kids
Even if you do not plan on using the schools, the school district should still be an important part of your home hunt. If you have been browsing online real estate listings or talking with your agent, you have likely seen or heard about local school ratings. School district ratings are one of the neighborhood lifestyle statistics you often find in home-for-sale listings, along with data about walkability, crime, and more.
It might be tempting to skip over this info if you do not have kids, but do not discount this valuable information. If you are not a parent or do not plan to be one, you might still want to consider buying a home in a “kid-friendly” neighborhood with highly-rated schools.
The National Association of Realtors (NAR) found 26% of home buyers said the quality of local schools was important when finding a home and 20% said proximity to schools was a deciding factor. Realtor.com found that homes in good school districts got 26% more online views than comparable homes in average school districts and sold on average eight days faster. When school districts maintain their good rankings, these homes will likely appreciate in resale value.
Find the Right Agent
Choosing a location for a home is dependent on many factors for your individual needs. If you’re looking for better resale value and a safer location for your home, then you should consider buying a home that is located within a high-rated school district. Your realtor can help you choose a home in the perfect location for your needs
Windermere’s community of real estate professionals is our greatest asset. We have experts in all areas of real estate, from your typical starter home to condos, luxury properties, and new construction. While residential real estate is the mainstay of our business, Windermere also has offices and associates who specialize in property management, commercial real estate, and relocation services. To further facilitate the home buying process, Windermere has affiliated partners in certain regions to provide mortgage, title, and escrow services.
Call us today with any questions or concerns. Our professional Real Estate Agents will help you through this exciting process. (951) 369-8002