Is Your Dream Home in the Right Spot?

When purchasing a home, there are countless decisions to make and factors to consider, such as price, layout, amenities, and condition. However, the most important consideration is the one thing that cannot be changed after the purchase: the location. While everything else can be altered or updated with enough patience and money, the location is permanent.

Most homebuyers consider location at a high level, such as the distance to work, friends and family, the nearest grocery store, and access to major roads. However, there are additional location specific factors that require in-depth consideration as part of the home purchase decision making process. These factors could be the difference between having a dream house or a nightmare.

Is It in a Flood Zone?

Getting flooded is one of the worst experiences for a homeowner.  Some states require flood maps in the disclosure package but some do not. Feel free to use FEMA’s Flood Map Service Center to determine the flood risk for your property. Most mortgage lenders require flood insurance if the house is located in a high risk flood zone. Flood insurance is separate from standard home insurance and homeowners need to factor in the additional cost for it.

Even for homes not in a flood zone, it is prudent to check the grade and drainage of the property and neighborhood. It is best to avoid houses at the lowest point in the neighborhood or if the yard is sloped towards the house. During heavy rain, water flows along the path of least resistance.

A homeowner on Reddit mentioned, “We bought our first house on the bottom of a small hill. It flooded multiple times a year. Never will buy another house at the bottom of a hill again.”

Are There Any Environmental or Natural Hazards?

Besides floods, it’s crucial to consider other environmental and natural hazards, including noise. If you’re in an earthquake-prone area, check the geological report to understand the soil condition and the proximity of fault lines. USGS offers an interactive fault line map. What’s the probability of hurricanes in the area? Most home insurance policies do not cover earthquakes or hurricanes, you’ll need separate policies for these events, which can add to your costs.

Man-made environmental hazards also deserve attention. Some states require disclosure of these risks, but it’s wise to do your own research. Look for industrial sites (factories, power plants, refineries), landfills, superfund sites, and gas stations within a certain distance of the property. Noise pollution is another factor to consider; homes near airports or busy highways can suffer from constant noise, which can be a dealbreaker for many.

How Well Do You Know the Neighborhood?

Many new homeowners are surprised by issues in their neighborhood after moving in, such as unexpected traffic, noise, boisterous neighbors, or barking dogs. To avoid unpleasant surprises, consider these tips:

• Visit the neighborhood at different times of the day and season (if feasible).
• Check Nextdoor or Facebook groups and ask about the pros and cons of the area.
• Knock on neighbors’ doors and ask about the neighborhood and neighbors. This is also a great way to meet your future neighbors. For example, a Reddit user mentioned that they didn’t realize their neighbors were huge football fans until football season, when they celebrated with loud outdoor parties.

How Desirable Is the Location?

Look for properties with greater desirability as they have potential for greater home value appreciation. Several factors can affect the desirability of an area, which can be simply defined as where most people would want to live. What makes an area desirable to one family might be different for another, but most people agree on the following qualities:

• Low crime rates and a safe environment.
• Good school district, which typically translates to higher property tax and value.
• Nearby access to leisure and entertainment, such as parks, trails, and entertainment venues.

Upwardly employs algorithms to help assess an area’s home value appreciation potential. We found that there is a positive correlation between nearby amenities and home value appreciation. Our clients benefit from our insights, helping them determine which home is best for them based on multiple factors.

What Is the Orientation of the House?

The orientation of a home might seem like a minor detail, but it significantly impacts both the enjoyment and maintenance costs of your property. For instance, if the house faces the afternoon sun during the summer, it can become very hot, making it challenging to keep cool. Conversely, in the winter, snow will linger longer on the side that receives the least sun. If your driveway is on that side, it may require more effort to keep clear.

To HOA or Not?

While homeowners association (HOA) is not a location, it is closely tied to the home and is often a near-permanent feature of the neighborhood. Numerous Redditors have warned to stay away from houses with HOAs, citing Green Valley Ranch HOA in Denver, Colorado as an example. There are pros and cons to an HOA, so it is important to understand what is permitted, restricted and required in the HOA’s bylaws as it may impact how you can enjoy your home.

• Ask for a copy of the bylaws and accounting. Review it thoroughly.
• Ask neighbors what they think of the HOA.
• Search online for any reference to or legal proceedings with the HOA.

Also understand that HOA fees will increase over time due to inflation and unaccounted or unforeseen maintenance.

What Else Should You Check in a Neighborhood?

Here are more tips from experienced homeowners on Reddit for assessing a home’s location:

• Traffic Patterns: Use Google Maps to see potential traffic patterns. Enter your work or local amenities’ locations and use the traffic filter to specify time and day of the week to get an idea of historical traffic patterns. Use Google Street View to check road conditions if you can’t drive the route yourself.
• Avoid Bail Bond Locations: Search Google Maps for bail bond locations and avoid neighborhoods if there are any nearby.
• Negative Features: Use Google Earth or Google Maps’ satellite view to explore for negative nearby features such as train tracks, industrial facilities, or power lines.
• Internet and Cell Service: Research the available internet and cell phone service providers in the area to ensure reliable connectivity.
• Proximity to Amenities: Choose a location close to amenities like restaurants and grocery stores to save time and money on transportation.

Overall, location is an important factor in choosing a home and needs thoughtful consideration alongside other criteria, such as the home’s condition beyond the curb appeal. Some say it is the most important factor, because a location cannot be changed. Therefore, it is prudent to give it more weight in your decision making process. Careful evaluation of a location will lead to fewer surprises and a more satisfying homeownership experience.