Can a Starbucks actually affect the value of your property? The answer is surprisingly, YES! According to a MONEY Magazine article, Zillow completed a study in 2017 that shows that the value of your house CAN be higher depending on how close you live to a Starbucks.
In fact, in addition to factors like square footage, school districts and neighborhoods, the price of your home can increase if it is close to popular retail stores like Starbucks, Whole Foods and Trader Joe’s. According to the article found in the May 2, 2017 issue, "Between 1997 and 2013, the property value of homes within a quarter mile of a Starbucks rose 96%, according to Zillow. That’s compared to a 65% increase in property values on average for all U.S. homes during that time frame".
After Whole Foods opened in Detroit in mid-2013, property values in the area saw an increase of $19,000 in 2009 to $80,000 in 2015. So watch for Starbucks and Whole Foods popping up in your area.
What other surprising factors can affect the value of your property? I did some research, and found some interesting data shared by Realtor.com and Trulia. Here are three unusual ones:
1. A Mega-church. We actually have several mega churches in Southwest Florida. Having a church in the neighborhood might seem like a plus, but not if it’s drawing in thousands of worshipers, according to Realtor.com. Homes near churches that had average weekly attendance of 2,000 or more sold at a 5.2% discount compared to similar homes. Noise is one reason for difference in price, but traffic is another a factor.
2. A Hospital. You might think people would want to live near a hospital. After all, a doctor would be only minutes away in case of an emergency. But sharing a zip code with the local emergency room could drag your home’s value down by 3.2%, Realtor.com found. Ambulance sirens and other noises are likely the reason for the discount.
3. The Address Suffix. What?! What does that have to do with anything?! Well, one study shows that living on Elm Street rather than Elm Road could mean you’ll get a little bit less when you sell your home, according to Trulia. Properties located on a 'Road' sell for $109 per square foot, compared to those on a 'Street', which go for $86 per square foot on average. Homes on 'Drives', 'Avenues', 'Lanes', and 'Boulevards' also tended to have a higher price per square foot than those on 'Streets'.
What other things affect the value of properties in your area?
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