By Stephanie Sims
If it’s in a highly ranked school district or near top-notch public schools, your clients have just added about $1 million to their home’s value. Private schools are expensive, and in today’s times, people would rather pay more for a home in a great public school district than for private school tuition.
This ties into the “location, location, location” mantra of real estate. The folks at Movoto.com did the math for us:
- The average American family has 1.5 kids; they rounded up to two
- The best private schools cost an average of $33,708 per year
- That translates into $67,416 per year for both kids
- Therefore, a family could afford $5,618 per month or more in mortgage payments. (67,416 for 12 months)
- Today’s interest rates for a jumbo loan are lower than this rate, but Movoto used 5 percent to be cautious.
- Using a mortgage calculator, a $1,000,000 loan would cost $5,368 per month
Therefore, a family could afford $1 million more when buying a home if they do not send their child to a highly ranked private school. When selling homes of clients that are near Lane Tech, Young Magnet High School or Jones College Prep in Chicago, New Trier High School in Winnetka, Deerfield High School in Deerfield or Glenbrook North High School in Northbrook, or any of these other top high schools in Chicagoland, take advantage of that selling point. If you’re not sure how the school near your client’s home fares, use this website to find out where it ranks.