For many real estate investors, location is everything. “Shark Tank” star and real estate legend Barbara Corcoran firmly believes this — and even abides by this rule when purchasing her own homes. With decades of experience and an estimated net worth of around $100 million, Corcoran’s property purchasing advice is worth listening to.
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“Any house I ever bought, I bought the spot, not the space,” she said. “You can control the space, but you can’t control the spot.”
It might be tempting to buy a home you like in a location you don’t, but you may quickly regret this decision. Keep reading to find out why a less-than-ideal location is one homebuying factor you shouldn’t settle on.
Permanence
“You can renovate a house, but you can’t move the land,” said Chris Wands, sales associate at Douglas Elliman Real Estate in South Florida. “Barbara Corcoran is absolutely right — location is the one variable you can’t change.”
A dated kitchen or tired flooring can be reimagined, he said, but you can’t relocate a property to change its view or offer location-specific benefits.
Long-Term Value
More than just a home, Wands said, real estate is an investment.
“Homes in prime locations tend to appreciate faster and hold their value better, even during market corrections,” he said. “It’s why savvy buyers prioritize ‘where’ over ‘what.'”
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Local Lifestyle
The neighborhood where your home is located guides your daily life, Wands said. This might include access to top-notch dining, cultural attractions, nature or general walkability.
Consequently, he said, people often trade square footage for a neighborhood that feels like home and allows them to enjoy their preferred daily rhythm.
Resale Potential
Even when buying a home, it’s important to consider how easy it could be to sell when the time comes. Properties in desirable locations tend to be more competitive and command higher premiums, Wands said.
“You can stage a space beautifully, but location speaks for itself — and buyers listen,” he said.
School District Mapping
Unfortunately, not all school districts offer the same quality of education. Consequently, it’s not uncommon for buyers to base their entire search around a specific school district, explained Holly Schaefer, a realtor at Corcoran Icon Properties, based in Marin County and Sonoma County, California.
Therefore, even if you don’t have school-age kids, it can still work in your favor to opt for a home in a good school district, as it could offer higher resale value.
Insurance Rates
If you take out a mortgage, you’ll be required to have homeowners’ insurance. However, certain locations are much more expensive to insure than others — including Sonoma County, where Schaefer works. According to her, sky-high insurance rates are not only bad for buyers, but they’re also bad for sellers.
She said, “It actually knocks some buyers out of the running completely for a home they could otherwise afford.”
Zoning and Tax Obligations
Schaefer also noted that city and county limits can have different zoning and tax obligations. This can even happen on the same street, where one side is within city limits and the other falls under the umbrella of the county.
She said this can impact both your wallet and lifestyle, as it may determine the size of your tax bill, access to utilities and services and ways you’re permitted — or not permitted — to develop your land.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Barbara Corcoran: 7 Ways Location Beats Space in Real Estate Investing
