Why do you suppose the property values are so different in Santa Cruz, Ben Lomond, and Watsonville?
I mean, bricks and boards cost the same in each city – why do they suddenly gain so much value when they are used to build a home in one place instead of another?
It is because you do not buy the home – you buy the area!
What effects the property values of a neighborhood?
The area provides three basic amenities; happiness and security, access to local or community amenities, and proximity to employment.
Low crime and good schools helps to make happy and secure families.
A beach, a lake, hiking trails, bike paths, shopping, restaurants, movie theatres – whatever you enjoy being close to often makes you want to live there.
Remember that quiet, mountain retreat that you could buy for next to nothing? Well, probably the reason you didn’t buy it was because it was too far from where you had to go to find work to pay for it!
All of the areas I have mentioned have many similar houses of a similar size. Yet, due to these factors, the property values of these homes can be dramatically different. The more people who want the amenities the immediate area provides, the higher the demand and the higher the price.
So, when you pull up to that adorable Craftsman-style home with the nice yard, take a look around.
The house is where you will be staying at night, but the area is where you will be living!
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