7/18/2023
by Paul DeCarlo, RE/MAX Preferred

Your property value might be affected due to the NIL policy.  On July 21, 2021, the NCAA approved the NIL policy allowing student athletes to earn money using their name, image, and likeness.  A few examples; an athlete can earn money for their autograph, making a personal appearance, or promoting products and services to name just a few.

There are rules, however, that still govern the use of NIL including state rules and college specific rules as well as rules that govern high school student athletes state by state.

Alabama passed HB404 in April of 2021 that went into affect July 1, 2021.  And in the State of Alabama, schools that are governed by the Alabama High School Athletic Association must abide by the associations Constitution outlining their Bylaw and Articles.

So how might this affect home values?  In Alabaster, Alabama, for example, many residents relocated from outside of the city’s limits after the high school began winning football championships. Thompson High School has won the State Championship game from 2019 through 2022.  They are a 7A school.  My own clients have specifically stated that they would pay much more for a home in Alabaster for this specific reason.  And this is not the only city where home ownership has been directly affected by a high school athletic program.

Cities such as Hoover, Spanish Fort, and Vestavia,  are just a few others that have directly benefitted from their athletic program’s success, specifically related to football.

How specifically is the NIL and home value intertwined?  It only makes sense that star players on a local high school football team might be chosen by a college where they can begin earning big money immediately upon graduation, which might not only benefit the player, but the player’s entire family.  And what better way to stand out to a college than showing off your 45 yard touchdown reel during the State’s Championship game?

Yes, NIL looks to be here for the long haul.  I’m not taking a side on whether I agree with it or not, but I can attest to the fact that it has determined some home values in part.

~ Paul DeCarlo is a REALTOR with RE/MAX Preferred in the Birmingham, Alabama area.  Paul has 20 years of full time real estate sales and ranks as a top agent in the State of Alabama.
~ No legal or investment advice is offered or given by Paul DeCarlo, RE/MAX Preferred