How to determine type of neighborhood

How to determine type of neighborhood

Boca Raton, FL · Member since 2015 · 135 posts · 132 votes

What is the general criteria people are using to define a type of neighborhood? I get the idea that A properties are in nice areas and D properties are in not nice areas.....but is anything else determined just by the neighborhood classification?

If you have a really old house, but if its in a nice area, is it still an A?

Does the condition of the home matter or is it just the actual neighborhood?

How do you even determine what is a nice area and what isn't and therefore assign a classification to it if you are looking outside your local market and are unsure?

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  • Investor · Cincinnati, OH · Member since 2015 · 374 posts · 120 votes
    10y

    I don't understand what info you're after.  A-D are just labels and don't mean much.

    Are you asking how to assess crime rates?  Or are you asking how to assess whether the neighborhood will help or hurt property value?

  • Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    10y

    I would say it's the actual neighborhood more than anything.  If the test scores for the school system are bad then it's probably a bad neighborhood.

  • Real Estate Investor · State College , PA · Member since 2009 · 594 posts · 173 votes
    10y

    @Kyle Scholnick

    You wrote:

    Does the condition of the home matter or is it just the actual neighborhood?

    IMO the old saying, location, location, location is overrated.  It is a big one, but once buyers are in your home, they determine if it is a place  they can work with and call home.  It has never paid off for me when I tried to leverage a home based on the neighbors home.  Well, unless you have a home next to a dump with 6 trucks and a excavator in the front yard.  Than you can be sure the neighborhood will have an impact;)

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