Why Buyers choose Your Neighborhood

Why Buyers choose Your Neighborhood

Who knows why home buyers pick one neighborhood over another? The National Association of Realtors® (NAR) does, and they answer that questions in their 2012 Survey of Home Buyers and Sellers.

NAR asked a large sample of buyers which characteristics were most important in their home buying process. The chart shows the 8 top-ranked factors.

Neighborhood Characteristics Ranked*
all
Buyers
Buyers
with Children
Quality of Neighborhood 61% 63%
Close to work 43 46
Affordability 39 38
Close to friends/family 35 32
Design of Neighborhood 26 24
Close to Shopping 26 21
Quality of School District 25 46
Convenient to Schools 22 44
*adapted from NAR Profile of Home Buyers and Sellers 2012

Proximity to friends and work is self-explanatory, and it’s easy to see how good schools would be so much more important to Buyers with children, but what do we really mean by “quality” when we’re describing a neighborhood? It’s not really made clear in the NAR study.

Fortunately, others have asked the same questions, including the U.S. Dept. of Housing and Urban Development (HUD). In a 1979 study called The Determinants of Neighborhood Quality they found statistical significance with a number of conditions. Here’s their list of the things most people are concerned about:

Quality Denver Neighborhood

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