Value of Schools Affect Value of Homes
As a licensed real estate broker here in Kitsap County WA, I can tell you from experience that one of the most common criteria that Buyers use in their home purchasing decision is the quality of education/school system in a particular area. A key marketing advantage for Sellers is being able to promote their home’s location within a preferred school district.
Such is the case with our own Central Kitsap School District.
If you access the Central Kitsap School District website, there is a great page link entitled, “Did You Know?” This page offers current updated recognition of the amazing accomplishments of both students and staff of Central Kitsap School District.
With the recent economic downturns and Wall Street debacles, home values across the country have been dropping. Such corrections are typical in the usual 8 to 10 year real estate cycle. However, in this most recent cycle, the fall in prices has been much quicker and more pronounced. fueled by the number of short sales and foreclosures.
One way to help stabilize and maintain home values is to maintain the value and quality of education in our local school district. Investing our time and resources to preserve the established quality of education here within the Central Kitsap School District will help to strengthen and protect our home investments.
Home values are also dependent on the property tax rate. Voting for a levy increases your property tax and reduces your property’s value to the potential buyer.
Cynic: It’s actually the other way around. Home values are not dependent on the property tax. Property taxes are calculated based on the valuations determined by the County Assessor. And furthermore, an increase in property tax does not reduce a property’s value. It may have some bearing in the Buyer’s decision making process, but it does not adversely affect valuation.
Rich: The real value of a property is what it will sell for, not some fantasy number assigned by the county. Any sensible buyer will compare his income to the taxes,interest, principle, insurance and maintenance cost of owning the property. If the taxes are too high, the buyer will have to get a lower price or there will be no sale.
Hard financial decisions are coming to both the Central Kitsap and Bremerton School Districts. Both have started their Citizen Finance Committees early this year. Both are in desperate need of citizens willing to sit at the table, do the hard work and offer up suggestions for the hard unpopular decisions that need to be made. Citizens who do not rely on the district for their livelihood, possible career advancement or elected position. True independent voices for the kids. Voices that need to be there explaining to the district what increased taxes and lower property values because of poorly performing schools mean to the average citizen. Sit at the table and be that voice.
Colleen: Points well taken. We definitely need more local citizens to step up and become engaged in the process!
Cynic: No argument from me on that point. As much as I appreciate the thankless efforts of Lee Avery and his staff, county assessed values rarely reflect actual market value. And while there certainly are those buyers who concern themselves with property tax costs when evaluating potential homes for purchase, most are more concerned with location, home features, condition, and overall market value.