Location is arguably the most important quality that determines the relative value of individual homes. That’s because each location is unique and can never be altered even by the owner.

How location affects house prices
The impact of location begins with the desirability of the city and locale where the home is located. For instance, places that have a mild climate or lucrative employment opportunities tend to have higher home prices than places where the weather is harsh or high-paying jobs are scarce. Geographical factors such as a beachfront or mountain views naturally affect home values too. And of course, being located in a good-quality school district can be a positive factor for any home.

All else being equal, a larger home, a larger lot or more acreage typically would be more valuable than a smaller home, a smaller lot or less acreage in the same neighborhood area. But location also involves more subtle aspects such as the position of a home within a neighborhood or subdivision. Where the home is along the block can affect home values as can street conditions or traffic patterns. For example, a home on a corner lot may be larger, but also may be subject to more traffic or less privacy. A home at the end of a street junction may be exposed to oncoming headlights after dark, or a home next to an apartment building may be along the sightlines of upper-level windows or balconies.

Even more specifically, your home’s position on its lot and the lot’s elevation are significant as well. A higher elevation may offer better drainage of rainwater away from the home and could expose the home to welcome breezes (or, on the other hand, unpleasantly strong winds). A home on a terraced lot may offer a pleasing view and more sunlight which could improve the home’s value. But keep in mind that if a flight of stairs is the only means of access to such a home, than the positive impact may be negated.

Location affects individual units too
The location of a condominium or other attached unit within a complex or building also can affect the value of that home. Upper-level units tend to offer more sunlight and privacy, better security and less noise while lower-level units may have a larger patio and be easier to access, especially if the property lacks an elevator. The location of a secured, attached or private parking garage can also affect the value of attached housing units.

How development can help or hurt home values
A location near major highways, vacant lots, railroad tracks, construction sites or other potential hazards to the safety of young children can impair a home’s value.

Home prices can also be affected by the proximity to parks, shopping centers, highways, public transportation and other amenities. And future development of new roads, public transit, commercial districts or more residences may be significant as well. New development may be desirable to some, but also could impair views or open space or bring more traffic and noise to the neighborhood.

Find out how much your home is worth at http://www.realestate.com/homepricecheck.