Tall! Decaf! Cappuccino!

The Starbucks Effect is real and I am not talking about the suave fighter pilot from Battlestar Galactica.  I mean Starbucks coffee.  While I myself love to frequent the establishment and really can’t get enough of the pure liquid gold that they sell, your local coffee house is actually affecting real estate.  It’s hard to believe, but if you are looking to buy a home or even sell your existing one, the closer that home is to a Starbucks, can dramatically affect the price.  It was once believed that once an area became hot and trendy, Starbucks move in.  After 17 years of research, the truth is actually surprising.  It has been discovered that a Starbucks coming into a neighborhood, actually increases the value of the surrounding homes and improves the area.  According to TIME Magazine, homes closest to the coffee chain have at times more than doubled in value, and in some areas, have values increased almost 96%. 

As a buyer, it makes sense to look for neighborhoods where a Starbucks is being built or has just opened so as to get in on the ground floor, so to speak, before home values increase.  For a seller, when you see a Starbucks entering your neighborhood, sit back, relax and watch your equity build up around you.  Now take that extra money in your pocket and go buy yourself a Venti Iced Chai Tea Latte with soy and two Splenda.