Real Estate Brokerage Finds Prices for Similar Homes in the Same Area Vary Greatly based on School Ranking
SEATTLE, Sept. 25, 2013 (PRNewswire) Redfin, the technology-powered real estate brokerage (www.redfin.com), today released a report on the correlation between home prices and school rankings. Using Multiple Listing Services (MLS), databases used by real estate brokers, Redfin looked at homes that sold between May 1 and July 31, 2013 to calculate median sale price and price per square foot of homes within school zones. Redfin uncovered more than 20 highly ranked zones across the country in which home prices are relatively low.
Not surprisingly, the report showed that home prices are higher when served by highly ranked schools. On average, homebuyers pay an average of $50 more per square foot for homes served by a top-ranked school than for homes served by an average-ranked school. However, the unexpected findings include large price differences for very similar homes located in the same neighborhood, but served by different schools.
Coastal California leads the way in terms of cost, with homes in the highest ranking school zones running from $300,000 more in Los Angeles to nearly $500,000 more in San Jose. Although the dollar cost differences in Miami and Phoenix were not as great, homes in the top-ranked school zones were still more than twice the price of homes in the average-ranked school zones, going from about $150,000 to $300,000 in median home sale price.
At the other end of the spectrum, Queens, NY, Raleigh, NC, and Eugene, OR offer smaller price differentials when going from an average-ranked school to a top-ranked school.
To read the full report, please click or past the following link: blog.redfin.com.
About this Report
School and home coverage consisted of 10,811 elementary school zones across 57 metro areas and included 407,509 home sales. School zone boundaries were provided by Maponics. School data and school test scores were provided by Onboard Informatics and GreatSchools. Percentile rankings are based on test scores for each of the schools.
Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not sales-people, earning customer-satisfaction bonuses, not commissions. Redfin’s online tools feature all the broker-listed homes for sale, as well as for-sale-by-owner properties that don’t pay brokers a commission. The company serves 22 U.S. markets and has closed more than $8 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World’s Most Valuable Private Tech Companies by Business Insider. Follow us on our blog (blog.redfin.com), Twitter (@redfin), and Facebook (facebook.com/redfin), Redfin Collections (www.redfin.com/collections), and on our mobile apps (www.redfin.com/mobile).