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The proximity principle

by Kim Cooper
| May 25, 2014 9:00 PM

This principle, in various studies, suggests that people develop lasting relationships with those in closest proximity to them. Their proximity leads to frequent contact and relationships develop by way of this frequent contact. This principle also applies to real estate - proximity affects value. Property close to a school can bring a higher price than a similar home that is distant to schools, at least for families with school-age children. Homes in proximity to a sewage treatment plant or landfill are not as desirable as a similar home next to a park.

Folks in proximity to Coeur d'Alene's new and by all accounts, improved McEuen Park will benefit, not only by utilizing the new features of the park, but through appreciating real estate values. A park that draws visitors en masse will arguably drive customers to businesses near there and will appeal to folks who want to make the highest use of that park. Those who frequent this park, just as those who frequent any of the beautiful parks in the area are more likely to develop relationships with one another. Therefore, one could argue that the further from the park the visitors come, the wider influence the park will have on relationships that strengthen our community.

Anyone who has children or a special interest has been a part of this principle as they discover new friends and build relationships with other parents involved in the same school, sports, theater, or others who become proximate with neighbors in an activity or group. A group of horse lovers finds relationships with those of similar ilk and may mutually benefit the fairgrounds as their common ground. If the area around the fairgrounds is suited for horse habitat the neighborhood will benefit from the principle.

Already some agents are positioning their listings in advertising with, "close to McEuen Park" in anticipation of attracting the park's audience to buy real estate in the immediate neighborhood. As popularity and notoriety of the park's benefits both physical and visual grows, property values are sure to follow.

As the months and years evolve, so will the neighborhoods near McEuen. Values will rise enabling developers to tear down buildings previously too costly to rebuild because of market values. Higher property values mean a better return on the significant investment required for demolition and reconstruction and soon, decrepit properties soon will give way to newer, more suitable housing and storefronts that will compliment the beautiful park.

That renewal will ultimately affect real estate values throughout the area as people drawn here by outdoor activities see one more amenity to increase their enjoyment. As property values increase the proximity principle implies that a ripple effect will drive prices up slightly farther away and ultimately, any Coeur d'Alene address will be associated with McEuen. If you do not believe it, watch the real estate ads.

Trust an expert....call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.