The Importance of Location in Real Estate

In a real estate boom, homebuyers will clamor for almost any house that hits the market. This is great while it lasts, but when the party's over, only homebuyers who choose the best location  will be holding the most valuable property that also depreciates at a much slower rate. This difference in value is essentially a result of a home's location.

"Location, location, location" is a common mantra in real estate. And it's good advice—except for one thing: Most people have no idea what it means.