R.E.I.G.N – Orlando Real Estate

Do your Market Research Joe!

Why is market research important?

The core elements of your home, community, city, and state greatly influence the cost of your property. Factors like school district ratings, crime statistics, and taxes often go unnoticed—until they become problems after you’ve purchased the home. Be proactive, Joe. The answers to your questions may not be as simple as they seem once you start weighing your needs, wants, and budget.

Of course, we all want the best of everything: great schools, low crime, and manageable taxes. But does that fit into your budget? Or will you need to compromise, perhaps by looking for homes with good (but not amazing) schools for little Timmy? Maybe you’ll consider stretching your budget by working extra hours to afford the higher taxes in the area you desire. And let’s not forget the critical question: how do property taxes even work?

This market research will give you a clear understanding of the true costs of homeownership and might even give you an edge in the market. For example, imagine you’ve done your homework like the rockstar you are and discovered that a commuter train is being built in two years, connecting downtown to a new area. A home nearby might be exactly what you need and could be selling for thousands less than a house already near an existing station. Or maybe you’ve learned that the local high school is scheduled to be rebuilt with one of the best science programs in the state. Insights like these can turn your research into significant opportunities.

School Districts

School districts often present a “chicken-and-egg” scenario, heavily influenced by state and local factors. Generally, people are willing to pay a premium for homes in good school districts, which increases demand and, consequently, home prices. Depending on your situation, this can work to your advantage. For example, if you plan to stay in the home long-term, the strong resale value created by a sought-after school district can be a significant benefit. The same demand that made the property expensive when you bought it will likely keep driving up its value as the neighborhood grows and building opportunities decrease. And, of course, better schools mean better academic opportunities for Timmy.

However, there’s a trade-off: higher home values often mean higher property taxes, which can increase your monthly mortgage payment. As we’ll discuss in more detail later, property taxes are typically tied to the home’s assessed value and included in your mortgage payment. As your home’s value rises, so will your taxes, potentially making your monthly costs higher than expected. We’ll cover taxes a bit more later in the chapter, but for now just keep in mind the close relationship between property taxes and school districts.

There are many ways to check the status and performance of the schools in your area, both commercial websites and most states have ratings through their department of education. Below are some quick references:

Online Resources and School Rating Websites

These platforms provide detailed school district ratings and reviews based on various factors such as academic performance, teacher quality, and parent feedback.

• GreatSchools.org:
  • One of the most widely used websites for school ratings.
  • Provides ratings based on test scores, student progress, equity, and college readiness.
  • Includes reviews from parents and detailed information about each school.
• Niche.com:
  • Offers detailed rankings of schools and districts nationwide.
  • Ratings consider academics, teachers, diversity, and extracurricular activities.
  • Includes parent and student reviews.
• SchoolDigger.com:
  • Provides rankings and comparisons for schools and districts based on test scores.
  • Includes historical performance trends and demographics.
• U.S. News & World Report:
  • Publishes annual rankings for schools based on academic performance and college readiness.
  • Focuses on high schools but can still be valuable for overall district insights.

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2. State Department of Education Websites

• Each state’s Department of Education typically maintains a website with:
  • District and school performance data.
  • Graduation rates, standardized test scores, and other metrics.
  • Lists of schools labeled as “high-performing” or “in need of improvement.”
• How to Find It:
  • Search for “[State] Department of Education school ratings.”

*Authors Note*

A Counterpoint to Rising Costs: It’s worth noting that home prices in the United States have steadily increased for generations and will likely continue to do so. Whether or not your home is in an amazing school district, you’re probably going to see your monthly costs rise over time. While higher-cost-of-living areas often experience sharper increases in home values, most properties appreciate over the long term. This appreciation is part of the natural rhythm of homeownership, so keep it in mind when making your decision.