Friday, July 28, 2006
Study: Proficiency test scores affect home values in each school districtBusiness First of Columbus - by Jeff Bell Business First
http://cll.bizjournals.com/columbus/stories/2006/07/31/story10.html
Fox Mill Parent,
I do believe that the "perception" of the quality of the School system has an effect on home values. There is much research done in this country as well as many other countries. I have sold new homes for over 20 years, and my experience has been that the importance placed on the quality of the schools is somewhat dependent upon the type of homes being sold. Look at it this way.
Condominium and smaller Town homes are not typically impacted price wise if they feed to an underperforming school, because the buyer profile is often either a 1st time buyer with no, or very young children, or an empty nester who is moving down. These folks are generally more concerned with amenities, shopping and general conveniences to good roads etc.
My experience is that it is the upper end TH's and single family homes that are most impacted in a positive or negative way by the perception of the quality of the school system that it feeds to. Overwhelmingly, one of the 1st questions asked by buyers with school aged children is "how are the schools"? or "what schools do this neighborhood go to"?
My experience in the NoVA area, is that most buyers are very well informed, and have done much research on the web, to determine what the relative merits of different schools are, in the general area that they want to live.
We see many, many people who are "relocated to the area" for jobs etc., and most with children will have already been comparing the relative merits of the various schools in the area, as well as asking future co-workers for opinions on the quality of a given school pyramid.
Often times, the perception of a "good" school VS. a "bad" school is simply based on the "numbers" and "test scores" that are published on the FCPS web site as well as other web sites that provide data on schools.
I definitely have seen that people will pay a premium to live in a community where the "perceived" quality of the schools are rated very high, whereas some people will flat out not even consider looking at homes that feed into what they "perceive" to be a poor school district, even if it is priced much lower than similar homes that feed to a top rated school.
We live in a County where a very big premium is placed on education, (look at the size of the FC school budget), and I think most people buying homes who have children will make sacrifices in other areas of importance like size, newness, convenience to job etc. if that is what is necessary to get their children into what they feel is a "good" school. Much discussion (and pride) centers around our children, and what grades, academic achievemnts and honors have been bestowed on them. How many people do you know that make a point of mentioning that their child "made it into TJ"?
What the impact to Floris/Fox Mill and Madison Island communities will see in lost property values if this boundary shift goes through, I do not know. It could be argued that in 5 to 10 years, (look at perception of Chantilly High School in the late 80's compared to today) the "perceived" quality of South lakes may be very much improved, and home values will stabilize, and start to rebound. The question is what happens if you have to sell your home in a year or two.
I have read much data on the positives of South Lakes High School, and equal amount of negative things about South Lakes, But the perception is that Oakton, Madison and Westfield are considered better schools than South Lakes.
We all know that perception is the reality that most of us use when making any major (or minor) decisions in life. As an example, if a friend of yours told you that a particular restaurant had terrible food, you would probably accept this, rather than go try it yourself. Is this a rational decision? No. Could your friend have different tastes than you? Yes. Is it fair to the Restaurant in question? No.
People will wait in long lines, and pay very high prices to eat at a Restaurant where the ratings are considered high, regardless of whether the food or dining experience is truly better than the empty place next door.
The point is, home values "will" be impacted by the schools in which they feed, whether or not the perception of quality is right or wrong.