Backing up to a busy road???

Question

Im looking at a nice house, golf course community, 10 years old, 2900 sq ft, 5/3.5/2 . Understand, this is in Houston, so the swings aren't anything like the inflated values that crashed on the east/west coasts, etc.

House was at 226k(tax value) two years ago. I can probably get into it at 175-180k.

The problem is, it backs to a busy street, nothing big, two lanes and a turn lane, but its a growing area, so it will be widened in 5-10 years, I assume. There is easement area to give up, so it wont encroach on the property, and there is a tall privacy fence, 8 ft at least.

In your experience, how much cheaper will this house need to be vs. interior comps in the same neighborhood to move it later???

Michael S. · Answer

Mike:

My last sale was of the house I am currently using as my avitar and it was on a busier road. The road was a definate factor in alot of people's decisions. The home sat on 2 acres and was approximately 150 from a busier road. It did not matter that it had great views looking at a ski resort, sat on over 2 acres, had it's own private stream, backed up to woods and was well shielded from the road via mature trees becuase the majority all said " It's a beautiful house, but it's too close to the road".

I always try to find out what potential buyers think, especially if they have no further interest. In this area I was very friendly with the local realtors and knew most of them, so I was able to get good feedback. All would report back "It's too close to the road!" Unfortunately, this was one thing I couldn't easily change.

This particular home was in in a second home area and in most communities 150 feet from the road would be very desirable, but it wasn;t in my case and the reality is that a busy road will kill alot of interest.

Homes in this area were taking 5 to 9 months to sell. Mine finally sold in 18.The lesson I learned is" Location,location,location. I would think twice before buying on a busy road.

Rich Weese · Answer

Short answer works here LOCATION LOCATION LOCATION. First rule learned in RE. If you are buying with the idea of living there forever, different story. With 5 bedrooms, you must  have a bunch of kids so the street noise won't be as bad. If you don't plan on using home forever, I'd be nervous about future sale. Rich

Chris Chung · Answer

I feel that the only thing you need do is make sure that the comps you choose to value the property are also backed up to busy roads.

Also, check how long it took those comps to sell to make sure you won't be waiting too long before you can flip or liquidate.

Dick Green · Answer

I'd ask a couple of appraiser for an opinion.  It really depends on the area.  Being a 5 bedroom, I would look at it from the perspective of whether or not I could quickly liquidate it.  Is this property's proximatey to the busy street a negative enough to deter a family from purchasing it?  If so, I'd equate a considerable negative value to it.  
          
          Once again, it really depends on location.  If you like, pm me and I can send you market data on the area.  I don't need the address....just the subdivision. 
          
          In Houston we're seeing huge discounts in some areas and stability/appreciation in others.  What's the rest of the neighborhood doing?  What shape is it in?  What's the structure like compared to homes in the area?  Who was the builder?  What are the terms of the sale?  What are your plans for the property?  These are some of the questions I would ask.
          Good Luck!