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Phone: (416)
454 - 9757 |
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Fax : (416)
650 - 5154 |
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Email:
olgakud@rogers.com
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How Location Affects Price
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The old saying that “location makes the property” is true, but there are also a number of myths about which aspects of location affect price.
Two factors that have a consistent relationship to price are city size and the quality of the neighbourhood.
Properties in larger cities are generally more expensive, as you can easily see by comparing the price of a home in a small town with a similar home in a large urban area like Toronto, Montreal, or Vancouver.
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| The quality of the neighbourhood can be harder for sellers to see clearly, because it's the buyer's perception that counts, not the seller's! No matter how much a seller praises the virtues of their street or their neighbours, the buyer will form their own opinion. |
What constitutes ‘quality’ is elusive. A good definition is the perceived beauty, safety, status, and upkeep of the surrounding area.
Neighbourhood quality can also vary over time due to deterioration and urban renewal.
Aside from city size and quality of neighbourhood, most aspects of a location do not have a consistent effect on price. Rather, they should be seen as features which are desired by some buyers and not by others.
For example, a main street with heavy traffic might not be a desirable location for people with children, but could be ideal for a young working couple who want easy access to the main road.
A property backing onto a park or next to a school might be ideal for a young family, but a more mature buyer might reject it due to worries over break-ins or noise from children playing.
A property next to a plaza or place of worship is desired by some for ease of access, but undesired by others due to crowds.
Fads and fashion can also come into play. For example, about 25 years ago a corner lot was considered very desirable,
whereas nowadays it is generally thought of as a negative.
Every location has many potential pros and cons that will impact each buyer differently. |
When determining the price of a home, the universal factors (city size and quality of neighbourhood) set the general price range, while the other factors influence negotiations with individual buyers.
Your Realtor will take all of these factors into account when helping you price your home. |
| If you'd like more information, or if you have a question that's not covered here, please ask me — I'll be happy to help. |
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