I get asked a lot about how a less than stellar school district effects the value of a house. This is one of those deals where what I am about to say is contrary to what people think. Ready? It doesn’t effect the value at all. Really.
The reason is because the current value is likely already less than the same house in a similar neighborhood with a better performing school district.
It takes a change in school district to really make a difference in value. If you had a better school and got redistricted to a worse performing district, then you might see a decrease in value (or increase in value if you get a new better school.) Make sense?
Obviously a neighborhood full of condos is kind of exempt from this because few people in our market with school aged kids opt for a condo.
There are some exceptions in Lexington. The Waterford and Pinnacle neighborhoods are right beside each other. Both have the same middle and high school. Pinnacle goes to Veteran’s Park Elementary, which is one of the best performing schools in town. Waterford goes to Southern Elementary, which is not one of the best performing schools in town. Guess which neighborhood has a higher value for essentially the same sized house of similar quality? Waterford. Personally, I think it is because Waterford is just a little older and has a bit more character. Funny thing is that Waterford use to be in Veteran’s Park Elementary district. It did take a hit in value for a while there after the change, but it is such a nice neighborhood that it came back. Think about this too: You take a giant neighborhood of kids that had contributed to the excellent test scores while at Veteran’s Park and move all of them to another school. What do you think happened to the test scores of the new school?
Lexington has many neighborhoods that sell well despite not being in top scoring school districts. If you want to be in a better performing school district, great. If you home school, private school or don’t have kids, then don’t sweat it. There are more elements that determine property value than just schools.