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Location, location, location.
The phrase is often used to describe what makes a home desirable and, by extension, valuable. A building's features may make the property attractive to buyers, but it's the surrounding neighborhood that makes people really want to live there — and pay a higher premium to do so.
Want to know if your home is secretly increasing in value because the area nearby is improving? These are some tell-tale signs.
Where People Are Investing Right Now
New infrastructure projects
These projects can include new roads or highways, added green spaces such as parks and playgrounds, and improvements to public utilities such as sewer lines and electrical grids. Well-planned and executed improvements to existing infrastructure are a sign of economic growth that will attract more businesses and people to the area, raising home values.
How to spot: Check your local newspaper for new project announcements. You can also log onto your local government's city planning department website and search for planned capital improvements.
New business incentives
Often at the core of revitalization projects, government incentives designed to attract new business are another indicator of economic growth. Cities and towns that offer lots of retail, dining and entertainment options are more attractive to prospective buyers. Homes within easy access of these amenities tend to fetch a higher price than those requiring a longer commute.
How to spot: Check your city's economic development office website for new incentives that may be in the works. These plans are also often mentioned in the news, so routinely check for updates.
School upgrades
Investment in local schools that raise the quality of education, such as upgraded facilities, modernized equipment and new technologies, is another sign of area growth. Proximity to top-ranked schools is highly prized by families with school-age children, leading to a price premium for homes in those districts.
How to spot: Your local newspaper will typically cover important news about school changes and improvements. You can also talk to parents who have children attending these schools for hands-on feedback. You could even have luck with local Facebook groups that have access to this information.
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Community involvement
Neighborhoods where homeowners actively maintain their properties and the surrounding areas are highly desirable to new buyers. Organized activities such as community gardens and neighborhood watch programs show a sense of homeowner pride that is compelling for many buyers seeking to raise a family in a safe environment — and who are willing to pay extra for it.
How to spot: Some neighborhoods have a community newsletter or online chat group that covers local happenings, so consider subscribing or joining to keep in touch with the latest news.