Why is location so important in real estate? If you plan to resell your home, the right location may maximize your profits when you sell. Therefore, when you buy, choose location carefully.

Even if you do not plan to resell, researching location is always a good idea. You want to have a good sense of the characteristics of the community you will be living in.

Location Considerations for Property You Will Likely Resell

If you plan on reselling, you may want to choose your location carefully so as to appeal to more potential homebuyers when you resell. Use the following criteria to think about whether a particular community may be a good place for you to invest in real estate.

Economic Stability and Growth 

- What shape is the economy in where you are considering buying? Is it stable? Is it on an upward trend? Is it on a downward trend?  
- How well is the community maintained? Can you drive through the area and tell whether homes and businesses are taken care of? 
- Is there a business and commercial section of town? What are the main industries? Are they flourishing, failing, or maintaining themselves? 
- What are the demographic and population trends? Is the community growing or dying? What is the age distribution? If people are leaving or coming in, what are their reasons?

Visit the U.S. census data Web site to search for information about different communities. Get a detailed profile of U.S. communities at City-Data.com www.city-data.com. Zillow.com gives estimated real estate values for any address you enter. You can also obtain values of properties by zip code.

Governmental Services

Community services include police and fire services, libraries, utilities, and recreational services. Look for the following in the location you are considering for real estate investment. 

- Is the community police force effective? How do crime rates compare to other U.S. locations? Does the police force have enough size and presence to keep the peace? Check out Sperling’s BestPlaces for a searchable database of crime reports by locality; this Web site also compares other community factors. NeighborhoodScout has crime rate data by location. 

- Is the fire department centrally and strategically located for fast response during an emergency? If the location is rural, is there a fire department? Paid or volunteer-based? 

- Does the community offer community-based services for residents, such as recreational programs, community education, and events? Is there a community center? 

- Are there libraries in town? Do they have a good and current selection of books and other materials?

Community School Systems

Schools systems in the location you are considering are important. Even if you do not have children, the family who buys your home in the future may well have children, and they will be more likely to settle in your community if the school system is good. Here are things to find out about the school in your location. Your local realtor may be able to help you find the answers to these questions. 

- Is there information available on how local students have scored on standardized testing? 
- Are the schools overcrowded? Is there evidence of auxiliary structures next to the schools like trailers? 
- Are the schools under crowded? Are they in danger of closing? 
- Do children in the community go to the school that is closest to their home? 
- Have bonds been passed for school improvement? What impact has this had on property taxes in the community?

Great Schools compares U.S. schools nationwide. RealtyUSA compares schools across communities and compares other community aspects.

Property Taxes

Weigh the pros and cons carefully of high or low property taxes in the area you are considering. 

- High property taxes may mean better services in town and well-maintained roads and city facilities. However, high property taxes may also scare away buyers when and if you go to resell your real estate. 

- Low property taxes may mean minimal services, in some cases.

Isnare.com lists U.S. cities with low property taxes. NETRonline links to public records for U.S. states, including property tax data.

The Residential Neighborhood

Finally, consider the actual neighborhood, and see how your property compares to the rest of this area. 

- Are all the homes similar in size? Are their styles and structure similar? While no home may be identical, you want to avoid buying a home that stands out too much – whether it is a home that is too big and too expensive for the neighborhood, or whether it is the most run down home on the block.

• Is the home in the center of the neighborhood, or on the edges? Ideally, the home will be located in the middle of a good neighborhood. If possible, it may be wise to avoid buying property that abuts a busy street or a different type of property. For example, if you are buying a single family home, avoid properties that are next to a business, a condominium, or an apartment. 

- Avoid corner lots, which can be busy. 

- If looking for residential real estate, avoid streets that are used as a short cut to other streets.

For more on real estate location, check out BNET or Blogging Stocks.