If you have a nice place in a nice part of town but on a sort of busy street how much does it affect the resale value of a home?
2007-04-26 07:16:58 · 4 answers · asked by Nicolleta 2 in Business & Finance ➔ Renting & Real Estate
It varies. The appraisal idea is a good one, or a CMA from a real estate agent can tell you basically the same thing. You can use a site like Zillow.com yourself to compare previous sales prices for homes on your street to those in the surrounding area.
2007-04-26 08:01:32 · answer #1 · answered by Mark G 4 · 1⤊ 1⤋
Nicolleta,
I believe the resale value is going to be determined by the buyer you get interested in the house. You can drop the value of the house $25k or $50k or even $100k, but you can't relocate the house. No matter what you do, the house will still be located near the street.
Parents like to have their children away from busy streets, and streets in general when possible. An appraisal will only give you the value (as determined by like-properties) in the surrounding neighborhood. The Appraisal will not take into affect highly the proximity of the street. But your buyers will. So if your buyer thinks that is worth a discount of $50k to make an offer to you to buy the property then that is how much it can affect the value. The main reasons will be due to children, uncomfortable living, and they will have the same problems when they go to resale.
A couple of solutions. One would be to show the home during the weekdays if possible, because it might be less likely to see traffic. Two, if your home backs up to the street, you might want to consider increasing the height of your wall (if you have one) in the surrounding back yard. This will help shelter the noise. Lastly, would be to list the home at its full appraised value, and let your buyers determine the reduction in value, don't do it for them. If you do, they might consider that reduced price as the starting price, and try to negotiate even lower. I know I would. Best of Luck.
Happy Hunting
2007-04-26 08:54:51 · answer #2 · answered by SNW 2 · 0⤊ 0⤋
You may see a small negitive adjustment. Also if the house is located in a corner. You need to ask the appraiser who comes to appraise the home, as he will be able to tell you in the specific area how much this will effect the value. Good Luck!
2007-04-26 07:35:01 · answer #3 · answered by novastarbanker 3 · 1⤊ 0⤋
Hello,
It depends on the characteristics of the busy street and the demand and supply in the neighborhood.
Typically you should discount about 5 to 7%.
I hope that helps.
Best regards,
Amol.
2007-04-26 07:25:25 · answer #4 · answered by amolheda 3 · 1⤊ 1⤋