Most people buy a home to live in--that is, they do not buy a home purely as an investment. While everyone would like to see the value of their home increase, most buy a home for more practical reasons. Whether it is to meet the needs of their family or as an investment, the most important factor that will ultimately determine the value of a home is its location. This column examines the importance of buying a home in the right location.

An experienced realtor will say the three most important factors to consider in home buying are location, location and location. The location of the home should be one that will appeal to the broadest range of potential purchasers in the future. There are many factors to take into account when evaluating the location of a home.

Firstly, a purchaser should look at the economy in the area. A stable economy makes a location in which people want to live. Additionally, most home listings refer to proximity to public transportation, schools, shopping malls and various community services. If the prospective home offers such features, it will attract a broader range of potential purchasers, as most people want to be close to these places. This will create a larger demand for the home. The result? A higher selling price.

The second factor to take into account is whether or not the area is safe and has a low crime rate. Some areas are also known to have low property taxes, which most purchasers fail to consider. Additionally, consider the immediate surroundings in the neighbourhood. If a purchaser can afford to buy the largest home in the neighbourhood, he or she may want to consider looking for a smaller home in a more expensive neighbourhood. This is because the value of the largest home in an ordinary neighbourhood is decreased by the surrounding smaller homes. Conversely, a purchaser may be better off buying a smaller home in a more upscale or stylish neighbourhood.

Another important factor is the actual location (i.e., the lot) of the home in the neighbourhood. If possible, a purchaser should avoid buying a home that backs onto a busy street, as the noise of the traffic can become a nuisance. Corner lots for example are usually larger, but they attract more traffic and are not as private.

The overall appearance of the neighbourhood must also be considered. How well do the residents maintain their properties? Is there a feeling of pride of ownership? If the neighbouring properties are rundown, this can negatively affect the value of a purchaser’s property. A purchaser should also take into account what the demographics indicate. If a purchaser has a young family, he or she will likely not want to move into a neighbourhood full of empty nesters.

There are numerous factors that a purchaser must consider when buying a home. Whether he or she is buying the home to live in for a long time, for an investment or for both reasons, the location of the home is of critical importance. A real estate professional can assist with finding the right home in the right location.