Mention almost any real estate transaction and the driving force in making the best investment and easiest sale is said to be “location, location, location.”
But what does that adage really mean? And what makes some locations better than others?
Is it something tangible such as proximity to public transportation, stores and parks, or something specific about the location such as a higher floor in a tall building or a landscaped lot on a suburban street? Or, is it a much fuzzier component like prestige, which might derive from being east of Green Bay Road on the North Shore or being on a tony stretch such as East Lake Shore Drive in Chicago where, in both cases, all the houses and buildings exude luxury? Or is it even more ambiguous, such as a certain quality of life that might be connoted by pastoral, peaceful surroundings?
Still others wonder whether a good location is something that can’t be defined and depends on each buyer’s set of priorities.
The answer? A resounding yes, yes, yes, all around, according to real estate agents and builders, who understand the whims of the real estate market and that today’s prime location may well become tomorrow’s desolate parking lot or that for every person wanting to be within walking distance of a downtown an equal number yearn to be surrounded by endless acreage and trees.
“Some want enough land to board their horses; others want to be able to walk to the train, stores and square, and almost everyone looking here wants less congestion but still to be within a good commuting distance of the city of Chicago or Schaumburg,” says Thomas R. Smith, of RE/MAX Tradition’s office in far northwest suburban Woodstock.
But even when such differences are accounted for, a large number of buyers still consider certain factors more significant than others and say they’re typically present when a location is described as “good” or “great.”
In almost any setting, whether in a city or suburb, the homes and apartment buildings in good locations reflect a similar level of quality and price point, which assures owners that their properties are likely to be maintained and appreciate over time.
For example, walk up and down Astor Street on Chicago’s Gold Coast neighborhood and there’s less variation in the quality of the townhouses and apartment buildings than on parts of nearby Dearborn Street. “In the 1500 block of Dearborn, you’ve got gray- and brownstones worth $1 million and more, but in between three-bedroom condos that need work for $200,000,” says Gayle Tepper of Prudential Preferred Properties’ Gold Coast office.
Other factors that help make a location good may be present in the city or the suburbs, because buyers tend to gravitate to one or the other for specific reasons. Generally, better city locations are closer to downtown stores, office buildings, health clubs and public transportation because residents want to be closer in to cut their commuting time and daily stress, says Suzy Thomas of Beliard, Gordon & Partners Ltd. in Chicago.
Good city locations in Chicago also offer attractive views from high floors and are near Lake Michigan, parks and comparable buildings. “That’s why buildings on Lake Shore Drive have such snob appeal,” adds Tepper.
A feeling of security also cements a city location’s stature as good, fostered by buildings with doormen or gates, a steady flow of vehicular and pedestrian traffic, abundant lighting and the absence of empty parking lots and alleys or other places that are perceived as attracting crime.
While good public school districts may improve a city location’s standing, many urban dwellers put schools lower on their wish list because they use private schools or have no children.
For the same reasons, locations lacking these good features or offering only a smattering of them may present an affordable option, but are less likely to be considered good locations by a wide segment of buyers. “The South Loop is a perfect example,” Tepper says. “The change is coming, but all the conveniences aren’t there yet to make it appeal to everyone.”
Adds Thomas, “Those who will take a bit of a risk in choosing a slightly less desirable location have a greater chance to see good appreciation down the road….”
In the suburbs, good locations generally mean nearness to Lake Michigan, parks or other recreational areas, but they’re also near–but not too near–a highway or major thoroughfare for ease of getting around, except for those who like being very isolated. And, they’re definitely within the best school districts because that’s one of the prime motivators that draws homeowners to the suburbs, explain partners Jim Diamond and Susan Schreiber of The Diamond/Schreiber Team of Coldwell Banker/Kahn in Deerfield.
Other factors boosting a location include a strong municipal government, well-stocked public library, high-quality sewer and road systems and land with the cachet of mature trees, views and Old World craftsmanship in existing nearby homes.
Susan Fares of Baird & Warner in Homewood had some of those attributes in mind–a custom-designed home on a lot with mature landscaping–when she bought a split-level home last April in nearby Chicago Heights. “It’s in a neighborhood where young families with children are moving in and also close to shops,” she explains.
But, certain ingredients clearly spell trouble for almost any location–generally extremes of any kind, says Diamond. While they may not nix sales, they can make a sale take longer, require that the price be adjusted downward or necessitate a more aggressive marketing/sales strategy that plays up strengths.
Among the frequently cited negatives are too much traffic, noise, or proximity to train tracks so that homeowners hear the trains rumble by; too much pollution from a factory or office building; high-tension wires; almost no back yard (for someone moving to the suburbs for a yard); and too much isolation, unless the person is dying to be in the boondocks or doesn’t mind driving.
And, while location continues to hold its strong allure, buyers have come to place greater emphasis on other factors. Because they know that appreciation is no longer a given, as well as know their own limitations regarding a down payment and the effort needed to fix up a home, they’re also taking into account price and value, condition, the floor plan and real estate taxes. They’re also being flexible about compromising on a location when necessary.
Condition has also become more significant. “Most people don’t want to clean up other people’s messes or dated homes,” says Schreiber’s partner Diamond. Tepper agrees. “Most homeowners are looking to do as little remodeling as possible and seeking quality fixtures and craftsmanship. It’s not just money but time.”
Along with move-in condition, homeowners are seeking up-to-date floor plans with large walk-in closets, master bathrooms and family rooms and consistent, neutral decorating.
Because of concerns regarding costs that homeowners often have little control over, more are eyeballing real estate taxes to be sure they’re not exorbitant or going up at an alarming rate when choosing a location, says David Hoffman, president of Red Seal Development Corp., a North Shore home builder.
Finally, some specific age groups and audiences are willing to compromise on different points. First-time buyers are less adamant about location if they can stay within their budget and get new hardwood floors, appliances and security, which means a gate or buzzer system rather than a doorman because of cost, says Millie Rosenbloom of The Habitat Co. in the city. “They also want proximity to public transportation since many don’t own a car.”
At the opposite end of the spectrum, empty nesters looking to downsize typically want a familiar location, says Diane Watry, director of sales and marketing at Norwood Builders in Chicago, which constructs middle-market condos priced between $110,000 and $220,000. “They may have lived in a neighborhood for 30 years and want to remain near their church, family, friends, shopping.”
Adds Ellen Sider of Prudential Preferred Properties’ Highland Park office, “People still think location is important but as long as the location’s nice it’s not as important as the home is.”
