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LOCATION, NEIGHBORHOOD MOST IMPORTANT FACTORS WHEN BUYING A HOME

 WASHINGTON, Dec. 2 /PRNewswire/ -- The size of a house and the number of bathrooms are important in determining the price of a home, but the characteristics of the neighborhood in which a house is located affect price the most, according to a study by the National Association of Home Builders (NAHB).
 According to data from the Census Bureau's 1991 American Housing Survey analyzed by NAHB, there are 12 factors that significantly impact the price of a house, in addition to age, location of the home (urban area, suburbs or a non-metropolitan area) and the region of the country in which the home is located.
 Those 12 factors are: size of the house (square footage of floor space); the number of complete bathrooms (those with toilet, sink and tub or shower); the number of bedrooms; the number of rooms other than bathrooms and bedrooms; the presence of a garage, basement, central air conditioning and a fireplace; the presence of a body of water within 300 feet of the house; the presence of roads nearby that are in need of repair; abandoned buildings in the neighborhood; and trash, litter or junk in the neighborhood.
 "While square footage, amenities and the number of rooms help determine a home's value, what's most important is the quality of the neighborhood," said NAHB President J. Roger Glunt. "The condition of nearby buildings and roads, the cleanliness of the neighborhood and the presence of water, like a lake or river, adds or detracts tremendously from the worth of a house."
 NAHB's analysis started with a "standard home," then added or subtracted different factors. A standard home is assumed to have 1,900 square feet of floor space, three bedrooms, two baths, three other rooms, a basement and a garage.
 The analysis found that when all else is equal, increasing the floor space or the number of bathrooms, bedrooms, or other rooms, adding a fireplace, or locating the house near a body of water increases the price. However, eliminating the basement, garage, central air conditioning or one of the bathrooms, or locating the house near bad roads, litter or abandoned buildings reduces the price.
 For example, the presence of abandoned buildings in the neighborhood reduces the price more than 30 percent; on the other hand, adding a third bathroom increases the price more than 17 percent.
 Specifically, changing the characteristics of a standard home were found to have the following impact on the price:
 -- A body of water within 300 feet ... +27.8 percent
 -- Adding third bathroom ... +17.5 percent
 -- Adding fireplace ... +10.8 percent
 -- Adding 500 square feet of floor space ... +9.4 percent
 -- Adding room other than bath or bed ... +5.9 percent
 -- Adding fourth bedroom ... +5.2 percent
 -- No basement ... -3.1 percent
 -- Bad roads nearby ... -6.5 percent
 -- No central air conditioning ... -12.8 percent
 -- Trash in neighborhood ... -14.5 percent
 -- No garage ... -14.6 percent
 -- No second bathroom ... -18.5 percent
 -- Abandoned buildings in the neighborhood ... -30.7 percent.
 -0- 12/2/93
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/


CO: National Association of Home Builders ST: District of Columbia IN: CST SU: ECO

DT-MH -- DC018 -- 9883 12/02/93 14:21 EST
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Publication:PR Newswire
Date:Dec 2, 1993
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