We identify commonly-available instrumental variables for housing hedonics for proficiency tests, school spending, and property taxes. We estimate the hedonic simultaneously with the reasons a person bought his house. We find larger housing value elasticities than previous studies: 0.47 for test scores, 1.07 for expenditures per pupil, and -0.37 for property taxes. We suggest schooling expenditures acts as a signaling mechanism. We find that people who use private schools and think their

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... school is excellent pay an additional 10% house price premium; this finding, along with capitalization of private school test scores, supports the theory of the marginal consumer.