I am planning to look at a property on a good street. However the property is first house on the street which is on the corner of a busy street. How does this impact the value?
Most like houses on this street go for about $240K. Becuase this house is on the corner, does this slightly decrease the preceptive value? If yes, how much?
I will impact is tlightly. I would allow for more vacancy time, but other than that many times it doesn’t make a lot of difference in my experience.
There’s a adage in used cars: “there’s a butt for every seat!” That applies to houses too.
The lot doesn’t change the value of a house (corner, across from school or next to a dump) what it does affect is the time on the market. The value depends on the square footage and subdivision. All houses in the same neighborhood that are the same size and same building materials are valued at the same price.
In my opinion this significantly affects the value of the home. Value is determined by what someone is willing to pay for the property. You can make value adjustments from comps based on SF, Quality, Vintage, Elevation/curb appeal, Lot Size, Lot type and location, etc… but there are certain factors that buyers aren’t willing to discount for, they just won’t buy the property. This may not be the case for all product types in all markets, but a lot that backs up to or is on the corner of a busy street, is less desirable than one that isn’t. I work for an investment company that has an asset that backs up to an alley that serves as a commercial loading bay, needless to say we still hold the asset :banghead when it gets to this point you either have to hold out for a buyer (which will affect your annualized return), or start cutting price.
I would adjust value for an asset in the price range 5-10k if this was a moderately busy street, but it could be way more, or less… it really just depends.
good luck :beer
bcap,
A house being on a corner may not be a bad in itself. However, sometimes being on a corner can be a very bad thing. If the town has any public works projects like a new sewer line and they decides to pay for the improvemnt by assessing the charge to the owner based on frontage, a house on the corner will have twice the frontage and pay twice the assessment. This may not be an issue in your area but it is good to be aware.
JP