Colleges aren’t the only ones who are looking for good test scores. Homebuyers are, too.
Living near a good school was so important to 78% of these buyers that they compromised on their home’s features to make that desire a reality, according to a survey released Tuesday[1] by Realtor.com.
The amenity that buyers most frequently gave up for the privilege of living near a better school was a garage (19% of buyers)—even though garages are the most sought-after feature among prospective home buyers, according to another survey from Realtor.com. (Realtor.com is operated by News Corp NWSA, -1.44%[2] subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
Home buyers also chose to forego an updated kitchen (17%), the number of bedrooms they wanted (17%) and outdoor living space (16%).
Also see: California’s emigrants aren’t all moving to cheaper housing markets[3]
“School districts are an area where many buyers aren’t willing to compromise,” Realtor.com chief economist Danielle Hale wrote in the report. “For many buyers, ‘location, location, location,’ means ‘schools, schools, schools.’”
More than half of buyers (59%) used test scores to determine a school district’s quality. Additionally, buyers considered whether schools had gifted and talented programs (53%) and art and music education (49%).
Overall, nearly three-quarters of home buyers said that living in a good school district was important in their house hunt, according to the 1,000 people surveyed who closed on a home purchase this year. And among buyers with children, that figure jumped up to 91%.
Some 49% of buyers between the ages of 18 and 34 cited school district as a more important factor versus just 37% of those 55 and older.
Read more: Home values are skyrocketing at the fastest pace since 2006[4]
Of course, buying in a good school district comes with a significant premium as well. A 2016 analysis from Realtor.com[5] found that homes located with the boundaries for higher-rated school districts were 49% more expensive on average than the median-priced home nationwide. These homes also sold more than a week faster than other properties.
Real-estate agents’ hands are tied when it comes to helping buyers. The Fair Housing Act prohibits agents from “steering” a buyer’s choice of home or neighborhood based on their race, ethnicity, gender, national origin, disability or familial status. As a result, an agent cannot say whether a home is located in a “good” or “bad” school district, though they can provide objective criteria such as the school’s test scores to the buyer.
On Realtor.com and Zillow ...