Property values are up to 32% higher in top-rated school districts vs. mid-rated districts. This small investment will pay off big for students now and for (Eden Prairie) property owners later when they want to sell their homes. ~Joel Kolko
Eden Prairie, Twin Cities Minnesota (PRWEB) October 26, 2014
Eden Prairie, Minnesota residents will be voting shortly on the 2014 Eden Prairie school Referendum that will likely influence the future of single-family home values in Eden Prairie. The Eden Prairie School referendum and proposed budget cuts have many talking about how it may impact the community long-term, according to The Minnesota Sun. Eden Prairie's quality schools have contributed to home values, which many residents have benefited from and don't want to loose.
"Home buyers that have young children in their household and are relocating to the Twin Cities have many excellent neighborhoods to choose from," says Jenna Thuening, owner of Home Destination. "Neighborhoods with homes for sale in Eden Prairie are often sought after because of the city's school achievement ratings. Historically, residents are willing to pay more for a home to live in a location where their children have promising futures."
Eden Prairie Schools have contributed to the strength of home values in residential Eden Prairie Minnesota neighborhoods for a long time. To change it up has some area residents worried. The current amount of proposed budget adjustments of $8,296,000 may help balance the city’s budget, but have the additional impact of lowering area home values.
Some households in Eden Prairie worry they could feel the impact of another failed referendum. Budget cuts in the educational system could impede its ability to maintain school district quality and may have the domino effect of home values tumbling, according to Eden Prairie Supt. Curt Tryggestad. “The quality of the school district can affect home values up to 32 percent,” he said. “If that starts to slide, it could start to affect all homeowners in the community over time.”
A housing study by Trulia Trends discovered that home prices in top ranking public school districts exceed the local average by 32 percent. "Buying a home in a good school district can result in resale advantages, offer protection from market fluctuation and provide a great education. Real estate experts in markets across the country share what you should know about a school district’s impact on real estate, whether or not you plan on using the school system," stated Deanna Lowley on Trulia.
Investopedia says that home price appreciation is the biggest factor in what determines a home’s value. The famed housing market mantra of "location, location, location" helps prospective Eden Prairie home buyers consider that long-term twined relationship of excellent schools and home values. When considering how to vote on the referendum, Eden Prairie residents looking at tax increases must also focus on how their home’s location in the market in proximity to quality schools will affect overall return.
For parents looking to move and buy another home, knowing whether neighborhoods have excellent schools, and what percentage of local children attend private or public schools, may tip the decision as to where to live. If residents agree to the proposed tax increase of only $13/month, residents of Eden Prairie will still remain among the lowest neighborhoods in the Twin Cites for school taxes - even after approving both ballot questions below. The estimated tax impact for a median-value home of $325,000 currently is $1,426 and would increase to $1,578. Robinsdale and Eastern Carver County come in highest at $2,090 and $2,079 respectively, according to voteyesforschools.org.
Eden Prairie residents are urged to get out and vote on the schools’ operating levy on November 4. The ballot questions will be:
- Question 1 – The district will ask residents to renew a portion of its existing operating levy of $589.33 per pupil, and to increase the operating levy by $700 per pupil, for a total of $1,289.33. This amount will stabilize the district’s finances and limit the amount of budget reductions for the next five years. This levy will generate about $12.7 million each year for the next 10 years.
- Question 2 – The district will ask residents to approve an additional increase in its operating levy by $150 per pupil, which will result in a total operating levy amount of $1,439.33 when the amounts from questions one and two are combined. This amount will allow the district to invest in lowering class sizes for students in kindergarten and first grade, and to hire additional staff to implement personalized learning strategies for students in grades 2-12. This levy will generate about $1.5 million each year for the next 10 years.
“The list of potential reductions is not meant as a threat, but as an honest attempt to identify what will occur if question one is not approved,” Tryggestad said. “If it is necessary to make the reductions, we will involve the community in these discussions to further refine the list.”
Some homeowners prefer gaining the extra house; others recognize that typically by buying a home - or a neighborhood with much higher-rated public schools - the payoffs are great at time of resale. “Buying a home located near excellent schools in Eden Prairie may mean paying for a higher priced home. However, typically, it will return costs to the buyer when adding in the value for the schools," believes Thuening.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up to a luxury home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.