Should you buy a house in a better school district? One with “higher-performing” metrics?
If you have a family with school-age children or are considering starting a family soon, it’s likely you are closely examining the local school district’s ratings on websites such as greatschools.net. In a 2017 study by the National Association of Realtors, 26% of home buyers considered the quality of schools when looking to purchase a home. Should you consider private school?A good home in a great school district brings a higher price, and also holds a better resale value than a similar home in a less-stellar district.
Home values inside top-rated school districts were far higher than the county median home price, according to a 2016 study by Realtor.com, which analyzed data from the residential listing database and school district ratings from GreatSchools.org.
Does it make sense to move to a better house in a neighborhood with lower-performing schools and consider a private school option?
This can come down to family priorities and may involve the sacrifice of far less square footage or yard space. The purchase of an equivalent home may be based on how much cash is available for a down-payment.
Here are some points to consider.
Financial Considerations of the quality of schools when looking to purchase a home
The table below shows some comparative values which make the following assumptions:
- You have, or plan to have, two children
- You stay in the house for 13 years (K-12)
- Public School Tuition = $0
- Private School Tuition = $24K per year, per child.** (Subtract $312,00 from “net loss/gain” if only one child, or add an additional $312,000 to “net loss/gain” for each additional child.)
- Your home appreciates in value at the rate of 3% per year
Note: you’ll probably have to factor in some higher property tax costs, and, for a more expensive home, additional interest costs.
Some Additional Considerations
Attending a private school means that it will be less likely that your child has classmates in their neighborhood/direct area. Is this important to you and your child? Then equality important is the quality of schools when looking to purchase a home.
Spend some time visiting potential private and public schools. How willing is the school to allow you to tour, talk to teachers, talk to parents? Does the school welcome parental involvement? Why or why not?
For a list of “price premiums” in Contra Costa county districts, visit my post at Price Premium: What You Can Expect to Pay in Contra Costa’s Highest-Performing School Districts
I have the area expertise to help you establish your priorities and navigate East Bay school district real estate. Call me at (925) 699.0031 to discuss how I can help you find the best home for your needs.
See the difference a committed, full-service approach to real estate can make.
** Average East Bay private school tuition pulled from privateschoolreview.com. Tuition increases with grade level, and generally increases 5% (or more) over time.
Copyright ©2020 Tom Nevin. All rights reserved. Helping buy real estate in Alamo, Walnut Creek, Lafayette, and the greater San Francisco East Bay Area.