STUDY: Properties Within Gated Communities Command Significantly Higher Prices
By Bobby Freeman, Realtor // July 6, 2016
422 gated properties for sale in brevard
BREVARD COUNTY, FLORIDA – Homes in gated communities command significantly higher prices – almost $30,000 on average – compared to similar homes in communities without a gate, and currently in Brevard County there are 422 properties for sale located in 156 gated communities.
However, gated neighborhoods’ additional amenities can also reduce sale prices because they bring maintenance costs that outweigh the benefits of the amenities, according to recent research published by the American Real Estate Society (ARES).
“This study provides clear evidence that homes in gated communities sell at a premium relative to comparable homes in non-gated communities,” says ARES Publication Director Ken Johnson, Ph.D., a real estate economist at Florida Atlantic University’s (FAU) College of Business and co-developer of the Beracha, Hardin and Johnson Buy vs. Rent Index.
The study examined 11 gated communities and a sample of matched non-gated properties, using a data set of housing sales in Shelby County, Tennessee.
The researchers found that residential properties in gated communities command a noticeable price premium of approximately $30,000, most likely resulting from actual or perceived benefits associated with additional privacy, homeowner associations’ tighter controls on maintenance, home design and the added assurances against crime and other undesirable activities.
“I believe most homeowners would feel safer in a secured complex,” said Jennifer McCoy, Broker Associate with RE/MAX Elite’s McCoy-Freeman Group.
“Communities like Heritage Isles in Viera requires each driver to show their photo ID to the guard at the gated entrance in order to enter this 55 and older master planned community.”
So, what does all this mean to buyers and sellers?
“The long-held belief that gates add value is supported by the data, as long as the impact of the amenities is properly factored in,” Johnson says.
“This should set buyers’ minds to rest as to whether or not they are actually receiving a boost in value when they purchase inside a gated community.”
ABOUT THE AUTHOR
Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards including the prestigious RE/MAX Hall of Fame Award.
Freeman, Jennifer McCoy and Nikki McCoy-Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $300 million.
Among McCoy-Freeman Group’s achievements are RE/MAX Hall of Fame, RE/MAX Platinum Club, Certified Luxury Home Marketing Specialist (CLHMS), Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County.
The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 News, News 13, WKMG News 6, Coastal Condo Living Magazine, Hot Retirement Towns Magazine and SpaceCoastDaily.com.
For more information log on to BrevardRealtyConnection.com