August 25, 2004
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Area schools often a draw for many home buyers
By Jean Newton
It’s back to school time for students whose parents may have purchased their homes specifically because of the schools in the area. Although it is not the top reason why buyers choose a home, a good school district is high on the list of reasons to buy.
According to a profile of home buyers and sellers from the National Association of Realtors, the factors influencing neighborhood choice when buying a home include: neighborhood, 62 percent; close to jobs/schools, 32 percent; close to friends/family, 32 percent; schools, 17 percent; and shopping centers, 14 percent.
Realtor Brian Kessler of Intero Real Estate Services in Los Gatos believes schools and school-district boundaries play a huge role in the decision to buy a particular home.
“A top-rated school district can add approximately 10 to 15 percent to the value of a property. As a Realtor, it is amazing how often this topic comes up during the home-buying process. Buyers are insistent upon a particular school district, often more so than they are concerned about the actual home,” Kessler said.
Some of Kessler’s clients have even been willing to make significant sacrifices in property amenities to compensate for a highly regarded school district. Buyers with no children are also concerned about school districts, said Kessler, because they understand that it will make a significant difference when it comes time for resale.
Additionally, Kessler found that clients are likely to discuss the topic of private schools versus public schools. “Quite often the client will decide that they would rather put their dollars into a mortgage than into private-school tuition,” Kessler said.
Dennis Byron of Byron and Associates in Los Gatos also thinks schools play an important role in the value of a home. He works with many clients who are relocating from other areas and are interested in knowing all about the schools in a particular area.
“Schools are the reason that you pay a premium in areas like Los Gatos and Saratoga. Good schools will add a minimum of 10 percent. I deal with a lot of people that come from overseas. These people are informed about the school districts before they come over. Many have already set up interviews with the schools and asked me to find them homes in a particular area in that district so they can attend a targeted school,” Byron said.
For those who are relocating here and don’t know about the districts, Byron recommends they get on the Internet and visit www.greatschools.net. “This website is designed to inform them about schools’ rankings and other information. I will also give them a copy of the McCormack’s Guides, which also gives the latest school rankings,” Byron said.
When it comes to schools in the Los Gatos and Saratoga areas, Realtor John Leslie of Alain Pinel Realtors says he strongly believes the value of homes is definitely influenced by the school district.
“The demand to be in the Los Gatos School District causes the home prices to be higher than those in the Campbell Union District. Home sales—particularly under $1 million—historically show about a 10 percent difference. This goes back to the mid-1980s. Today, with the prices so high for homes, the percentage is much higher when one looks at homes over $1 million,” Leslie said.
He believes one of the reasons for the continued added value is that Los Gatos school districts have maintained their high standards.
“The special assessments that residents have repeatedly passed to keep teachers and classes that were slated to be lost demonstrate the importance of the district to residents. Los Gatos and Saratoga High both are being updated by funds from measures that passed in recent elections. Fisher Middle School, also, is nearly finished after funds were approved to have it totally remodeled,” Leslie said.
Leslie also says there is a misperception that the Los Gatos homes located in the Campbell Union School District are not as in demand.
“This is not the case. The demand for homes with a Los Gatos address is always in demand. The fact that prices keep rising reflects this situation. Buyers get more square footage for the price, a large selection of homes and neighborhoods in the Campbell Union School District and the Los Gatos ZIP codes,” Leslie said. “The pride of ownership is just as great for their homes and their schools. The fact that Los Gatos historically ended up with two school districts within its boundaries has not diminished that Los Gatos is a very affluent town and has great schools.”
Realtor Chuck Lane of Coldwell Banker recommends buyers take a look at test scores and visit individual schools. He provides information and resources for those interested in knowing more about schools in the community.
“For some clients the school district is extremely important even if there are no children involved. If it is a single-family residence, then you also need to consider resale. It can affect the value by as much as $100,000,” Lane said.
In addition to www.greatschools.net as a source for comparing school districts, Realtor Dante Drummond of Coldwell Banker recommends going to individual school websites for more localized information.
“Most city school districts have their own websites with mission statements and information about their district schools or links to their district-school websites. A caution: School scores can sometimes be misleading, as in the case when there may be special programs for multilingual or disabled children in highly successful schools.”
When it comes to real estate, it pays to do some homework to find out which schools and districts will not only fit the requirements of families and children, but also will stand the test of time when it comes to adding value to a home.
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