By Jean Newton

One of the phrases most often heard in the real estate business is “location, location, location.” As the mantra of realtors, the emphasis on location is one of the most important criteria when considering the purchase of a home that my be the largest investment a potential homeowner can make.

For many people, the right school district is also at the top of the list as the most significant factor influencing a buyer’s decision to purchase a home. That’s one of the main reasons why people want to live in communities like Los Altos and Los Altos Hills. It’s also why home values remain high in certain areas as opposed to others.

“A good school district like the Los Altos School District is a key factor in keeping property values and prices up,” said Alicia Tuvell, president of the Silicon valley Association of Realtors. “For example, the latest statistics show median home prices in Los Altos at $1.2 million and in Los Altos Hills at $1.95 million.”

When appraising the value of a home, the schools and reputation of the school district are taken into consideration as part of the evaluation, said certified general appraiser George H. Miller of George H. Miller Associates in Saratoga. A well-known expert on real estate and the author of “Residential Real Estate Appraisals.”

“Where the occupants of a subject property will go to school and whether the school is highly rated, is one criteria we use to determine value,” Miller said.

Determining what school district to choose is the expertise of Nancy Ginsburg Gill, a Los Altos resident and the author of “Parent’s Guide To School Selection in San Mateo and Santa Clara Counties.” She finds that people will pay more for exactly the same house in a better school district.

“People will pay so much more in Los Altos because the schools are so good and well-run,” said Gill, who often works with families relocating from the East Coast who are used to per pupil expenditures of $9,000 and $10,000 rather than the $6,000 to $7,000 range found locally. “They are horrified at the class size in the upper grades. It’s not only about test scores and class size, it’s also the extra enrichment offerings that are important, too.”

Gill’s book provides detailed information on how to select a school and includes charts on test scores, lists schools with additional funding in place such as bond measures and parcel taxes and provides an overview of public education financing.

So what makes the Los Altos community such a desirable place to live? For new homeowners John and Heather Fitzsimmons, the schools were an important consideration. In addition, the “whole environment” or hometown feeling in Los Altos closed the deal for them in a multiple-offer transaction.

“We like the nice neighborhood, a quiet, almost rural feeling. It’s a good place to raise kids. We bought here for the good school district and know the house will hold its value,” said John Fitzsimmons. His wife, Heather, added, “We’re in a great neighborhood with lots of trees. We can walk to downtown and it’s close to Santa Rita, Egan and Los Altos High schools.”

The realtor who helped the Fitzsimmonses find their new home, Kathy Bridgman of Alain Pinel Realtors in Los Altos, knows first-hand how schools impact real estate. A former teacher at Egan, she took her children out of private schools and moved into a smaller house in Los Altos from their home in Willow Glen to take advantage of a “phenomenal school district.”

“There is no doubt the school district is a valuable asset,” she said. “Property values are going up again. People want to live here and are willing to pay the price.”

With multiple offers back on the scene, the real estate market seems to be heating up. Many buyers who sat out on the sidelines last year are deciding that the time is right to come back into the marketplace. When they do jump in, location will play an important part in determining value for homeowners as well as buyers.