{"id":161500,"date":"2023-10-31T21:02:00","date_gmt":"2023-11-01T03:02:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=161500"},"modified":"2024-10-07T12:45:11","modified_gmt":"2024-10-07T18:45:11","slug":"breaking-down-the-location-location-location-principle-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/breaking-down-the-location-location-location-principle-in-real-estate","title":{"rendered":"Breaking Down the &#8220;Location, Location, Location&#8221; Principle"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">When you ask what the most important factor is when buying a piece of real estate, whether it is a primary residence, a second home, or an investment property, their response will often be the old adage: \u201clocation, location, location.\u201d It\u2019s a well-known, trusted rule that emphasizes the importance of choosing the right location when buying a property. A property in a good location will usually come with a higher property value, higher appreciation rate, and will offer a better quality of life.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Who Said It First?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When putting this article together, I was hoping to go down the rabbit hole and uncover an interesting backstory on the origin of this famous buying tip, but I was surprised to learn that nobody knows for sure where the phrase originally came from.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some journalists have reported that Lord Harold Samuel, a real estate tycoon from Britain, was the one to first use the phrase. But that was debunked by&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2009\/06\/28\/magazine\/28FOB-onlanguage-t.html\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">The New York Times<\/span><\/em><\/a><span data-preserver-spaces=\"true\">&nbsp;when the newspaper found the phrase first used in a real estate classified ad in the&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Chicago Tribune<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;in 1926.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Regardless of the origin of the expression, it has been and always will be one of the most important considerations when buying property.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Factors to Consider<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are a handful of factors to consider when it comes to picking a property in the right location. These include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Proximity to work, schools, friends, and family:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;How close is the property to your office, your kids\u2019 school, or other destinations you plan to visit often?<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Safety:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">You should research the safety of the neighborhood by using a tool like&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.neighborhoodscout.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">NeighborhoodScout<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to learn more about crime rates in the area.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Amenities:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Consider proximity to amenities like grocery stores, gyms, barber shops, hair salons, shopping, healthcare, parks, and restaurants.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Transportation:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Accessibility of public transportation, freeways, and proximity to the airport are other important factors.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Future development:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Are there developers in your area working on any big projects that could impact this area\u2019s desirability in the future?<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The House Itself<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Once you know you have picked the right submarket, there are some other location factors to consider after you have honed in on an opportunity.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Neighborhood:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">You need to understand the neighborhood that you are buying in. Look at the age of the homes, whether the community is&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/should-i-invest-in-an-hoa-neighborhood\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">governed by an HOA<\/span><\/a><span data-preserver-spaces=\"true\">, if it is a gated community, etc.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Negative external factors:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Think about whether there are any negative external factors that could impact the house that you are thinking about buying. Examples include if there is a nearby commercial building, traffic noise, or if the home is in the flight path of a nearby airport.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Sun exposure:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">Sun exposure should be a big consideration, especially when buying in desert climates. The home\u2019s sun exposure will impact utility bills and natural light within the home. In a desert climate like where I live, a north\/south sun exposure home is the most desirable.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Neighbors:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Do the neighbors surrounding the home you are thinking about buying have pride of ownership? If the neighbors have a bunch of clutter in their driveway or their lawns are not well-kept, that will impact the desirability of your home.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Location\u2019s Significance<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The significance of a property\u2019s location can\u2019t be understated or ignored. Just some of the ways it will impact you as a buyer include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Property value:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">The location of a property has a major impact on its&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/increase-home-value\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">value<\/span><\/a><span data-preserver-spaces=\"true\">. A house in a sought-after neighborhood, close to desirable amenities, and in a good school district will generally command a higher price than a similar property in a less desirable area.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Investment potential:&nbsp;<\/span><\/strong><span data-preserver-spaces=\"true\">When you invest in a property as a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flip<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/are-rental-properties-a-good-investment\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rental<\/span><\/a><span data-preserver-spaces=\"true\">, a great location can lead to significant appreciation in your property value over time.&nbsp;&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Quality of life:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Your surroundings have a huge impact on your quality of life. Picking a property in a great location can ensure that your life (or your tenants\u2019) will be enhanced due to these conveniences and amenities.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Resale potential:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;If you plan to hold your property for the long term, picking the right location to begin with will prove to be valuable. A property in a strong location will be more desirable to buyers while increasing the likelihood of your home selling faster and for more money.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This old \u201clocation, location, location\u201d saying is a timeless, invaluable rule that we all need to be mindful of when buying real estate. There have been a few times in my real estate investing journey where I have ignored this principle and bought a property in a location that did not check all the boxes because I was eager to do another deal. In both instances, I faced challenges with achieving my investment objectives because I ignored this cardinal rule.<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">How much emphasis do you put on location when looking at an investment opportunity?<\/span><\/em><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_897aba76c1ca9cad3dbfe70ea9b74d12\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_dd1f7beb0d04048e7581a9ede80b32d3\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_27cbaa4629e8c9a57c40c5f1895dac02 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/breaking-down-the-location-location-location-principle-in-real-estate&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/breaking-down-the-location-location-location-principle-in-real-estate&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you ask what the most important factor is when buying a piece of real estate, whether it is a primary residence, a second home, or an investment property, their [&hellip;]<\/p>\n","protected":false},"author":613703,"featured_media":161502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7389],"tags":[],"class_list":["post-161500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/161500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613703"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=161500"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/161500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/161502"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=161500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=161500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=161500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}