Make the Location Attractive to Buyers

Choosing the right neighborhood is very important in a slower real estate market. It can have a huge effect on whether a home turns out to be a winning investment.

Even in hard-hit cities, some neighborhoods are holding up better than others.

"It's location, location, location — more than ever," says Lori Dahl, an associate with Burgdorff Realty ERA in Summit, N.J.

There’s nothing new in this list of things that buyers should consider, but still these factors bear repeating.

• Schools. Homes in highly regarded school districts generally retain their value better.
• Supply and demand. Prices are tumbling in areas where there are a lot of recently constructed and unsold homes.
• Convenience. Land is cheaper in exurbia, but the commute can be brutal and the services thin, so many buyers reject outlying areas.
• The street. In every area, some streets — even some blocks — are more desirable than others. Picking the most attractive and least trafficked area is almost always the best idea.

Source: The Wall Street Journal, Jeff Opdyke (3/14/08)