The Value Of Property Oddities Has Greatly Increased -- But That's Bad News!


The Value Of Property Oddities Has Greatly Increased -- But That's Bad News!
By Scott Rogers • December 17, 2009
While every home is unique, there are some properties that have peculiarities that can detract from their value. Some of these oddities include: steep driveway hilly building lot power lines across or near the lot on a busy road awkward floor plan non-residential-use neighboring properties There are probably other general oddities like these that may (to some extent) detract from the value of a home (add them in the comment section if you can think of any) --- but these are some that are widely viewed as being value detractors. A few years ago, when the market was hot, hot, hot (2000-2005, we'll say) these detractors didn't seem to matter too much to a buyer. Buyers often had only a few houses to choose from that would work for them, and some of those would go under contract the following day, so buyers committed to buying houses that had some peculiarities just to get a house. Now, buyers have lots and lots of houses to choose from, and thus if there are 10 houses that could work for them, and three have some of the oddities listed above, they will almost certainly only be considering the seven remaining properties. Thus, these property oddities have MUCH more impact on value now than they did just a few years ago. Put another way, a few years ago a 2400 SF home with 4 BR, 2.5 BA and a level lot would have likely sold for only a few thousand dollars more than an identical house down the street that had a very steep lot and driveway. Now, however, there might be a $10,000 - $20,000 difference in sales prices for these homes. Or . . . the home with the very steep driveway and lot might just languish on the market rather than selling. DOES IT MATTER? I had a very interesting conversation about this with a client a few days ago. Here is what we concluded: If you buy a property with oddities in a hot market, and you sell it in a slow market, you'll feel the pain. If you buy a property with oddities in a slow market, and you sell it in a hot market, you'll do great! If you buy a property with oddities in a normal market and sell it in a normal market, you'll do quite similarly as compared to if you had bought a home without oddities. Here is a visual representation of these dynamics: So . . . . to re-emphasize #2 above: you can likely negotiate significantly on a home with oddities right now (in a slow market). If you do so, you'll do fine if you sell it in an equally slow market, you'll do better if you sell it in a normal market, and you'll do great if you sell it in a hot market. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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