How important is location when selling a home?

LT Immobili & Design 08 June 2026

Location and property value are closely connected. But today, understanding what a home is really worth — and how easily it may sell — requires looking beyond a simple point on the map.

“Location, location, location.”

It is probably the best-known phrase in real estate. Three words that have survived decades of changing markets and still contain an important truth: location remains one of the most difficult elements to replace when determining the value of a property.

And yet, looking at today’s market, that formula can feel almost too simple.

A good location can support a property’s value, make it desirable and help preserve its appeal over time. But it is not necessarily enough to ensure a successful sale. More importantly, what we call a “good location” has become far more nuanced than simply measuring the distance from the sea, the town centre or local amenities.

Two properties can be in the same neighbourhood — sometimes even on the same street — and still have noticeably different perceived values.

A few dozen metres can change the level of traffic noise, natural light, ease of parking, openness of the view or simply the feeling you get when looking out of a window.

This is where the concept of property location becomes more interesting.

It is not only about where a home is located, but how that particular home interacts with its surroundings.

A quiet side street may command a different value from a busy main road. A higher floor may offer views that simply do not exist below. The right orientation can transform the quality of natural light throughout the day. A terrace overlooking the hills can completely change the perception of a property that, on paper, appears almost identical to the one next door.

This is why a property valuation should never be based solely on the average price per square metre in a particular area. Average values provide useful context; the real value emerges from understanding the specific characteristics of each property.

Almost everything inside a home can be transformed.

Rooms can be redesigned, a kitchen can be opened onto the living area, materials and systems can be upgraded, energy efficiency can be improved and outdoor spaces can be reconsidered. Home staging can change the way a property is perceived, while professional photography and a different marketing strategy can introduce it to an entirely new audience.

Location, however, remains where it is.

And it is precisely this permanence that makes it so important in determining property value.

A buyer may accept a dated kitchen if they recognise the potential of the house. They may imagine a different bathroom or a more contemporary layout. It is much harder to change a noisy road, move the building blocking the view or alter the orientation of an apartment.

The market understands this. Which is why properties in the most desirable micro-locations tend to command a premium.

This is where one of the most common misconceptions begins.

When a property is situated in a highly sought-after area, owners can sometimes assume that the market will accept almost anything: an ambitious asking price, an uninspiring presentation or an indefinite sales period.

That is not necessarily the case.

In fact, buyers in the most established locations are often better informed and more selective, precisely because they have more properties to compare.

An excellent home offered at a price the market does not recognise can remain unsold. An interesting property presented poorly can lose momentum during the crucial first weeks on the market. Weak photography can make something exceptional appear surprisingly ordinary.

Location creates potential interest. Market positioning determines how much of that interest can actually be converted into a sale.

They are two different concepts, and confusing them can be expensive.

There is another element that is often overlooked: a location does not necessarily retain exactly the same value forever.

Cities and towns evolve. Infrastructure changes, transport links improve, new services appear and, perhaps most importantly, people change the way they want to live.

Areas once considered peripheral can become desirable. Neighbourhoods that previously attracted little attention can develop a new identity. Conversely, historically prestigious locations may lose some of their appeal if the conditions that once made them desirable begin to change.

The way we live has changed too.

In recent years, balconies, terraces, gardens, privacy, space to work from home and the quality of outdoor areas have become increasingly important in purchasing decisions. This means that the geography of property value is not static: it evolves alongside buyers’ expectations.

Versilia is perhaps one of the clearest examples of this dynamic.

Here, simply talking about “proximity to the sea” tells us much less than it might appear.

Distance from the beach certainly matters, but it interacts with many other factors: the surrounding urban environment, the tranquillity of the street, access to services, outdoor space, views towards the Apuan Alps or the hills, the architectural quality of the surroundings and even the way a particular area is experienced throughout the different seasons.

For international buyers, the perception of location can be different again. Someone purchasing a second home does not necessarily evaluate the area according to the same criteria as someone planning to live there throughout the year.

Privacy, landscape, accessibility to an airport or the opportunity to combine the coast with historic cities and the Tuscan countryside may carry considerably more weight.

This highlights an important distinction: the geographical value of a property and its perceived value do not always coincide perfectly.

The digital market has changed this too.

In the past, buyers tended to compare properties within the same local area. Today, they can open a property portal and compare dozens of homes within minutes.

For international buyers, that comparison can be even broader.

A villa in Versilia may be competing, in the mind of the same buyer, with a property in the hills around Lucca, in Liguria or elsewhere in Tuscany. Not because those homes are necessarily comparable from a technical valuation perspective, but because they are competing for the same purchasing decision.

Location therefore remains decisive, but it must now be considered within a market where buyers have access to far more information — and far more alternatives — than they did in the past.

In our work, we prefer to consider location not as a label, but as one element of a property’s overall market positioning.

What matters is understanding what makes that particular home attractive compared with the alternatives a potential buyer is considering.

Sometimes it really is the address. In other cases, it is a more subtle combination: an unusually private terrace, exceptional natural light, the possibility of walking to the beach or, conversely, living a few kilometres further inland in exchange for tranquillity, views and more space.

Understanding this distinction is also essential when establishing an asking price.

Because an exceptional location may justify a higher value, but it rarely justifies any value. The market continues to compare — and, above all, it continues to choose.

“Location, location, location” therefore remains a useful rule.

Today, however, it might be worth adding three more words: price, perception and strategy.

Because location can make a property special. But it is the balance between what the property is, the value placed upon it and the way it is presented to the market that ultimately determines how much that location will really matter.