Hey There! Many of my clients back up to something other than a traditional home and they are curious as to how that affects their home's value.
So today we're going to answer the question, "If I back up to commercial real estate or road or something of that nature, does that affect the value of my home?"
Watch in the video above and read on for more information!
Value
So when I have houses that are adjacent to roads or to commercial property, let's say it's a grocery store or even in daycare, that WILL impact the list price that I recommend for the home, especially when we're comparing ourselves to other homes that don't back up to those items.
It does depend on your market, so I will look at the area and how other properties compare. I can tell you that some of my homes here recently, have had to have a pretty good size price reduction compared to other homes that weren't adjacent to a road or commercial real estate, especially if it's a busy road or something from a commercial standpoint that can be really distracting like a lot of noise or if there are lights.
There's other things that don't affect the value very much. I recently had one house that backed up to a daycare and it really didn't affect the value when we compared it to other properties in the neighborhood. It only affected it a few thousand dollars.
Generally speaking, being adjacent to a road or commercial real estate isn't a deal breaker. We can definitely sell the home still, it's just going to depend on what price the buyers are willing to pay and we'll address that in the listing appointment.
It also means that we may have to have more showings to find the right buyer
I would imagine in most cases, that when you purchased, you received a price incentive to purchase that home with the adjacent road or commercial property, so usually you're passing along that same savings to your new buyer.
Pricing
Usually I will recommend we reduce the list price compared to other homes in the area to account for this so we don't burn days on the market with buyers bypassing us.
We'll discuss where I believe the market will see value in our home and run a net sheet so you have all of your numbers.
I sell many homes that back up to roads and commercial real estate so it's just having a strategy to position ourselves for success!
Read on for tips on How to Prepare for a Real Estate Photography Appointment
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