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I bought a house 2 years ago. It's on a small 10,000sq lot. Next to it was a vacant lot of the exact same size. I didn't know who owned it or if it was for sale.
Last fall someone came over and introduced themselves to me and said they would be building in the summer. They're now building and I have a few concerns.
1. They're building the minimum distance away, which is like 6 feet. Their house looks like it's on top of mine. I have zero side yard anymore on that side. It's their property so I am not complaining
2. My house is small. Only 2100sq. This new house is over 3000sq and brand new. All the houses on the block are from the 40s-50s. My house is 1 block off the ground, theres is 4. Its massive.
None of these things bother me, but when I sell I am scared most buyers will be turned off by these points. Considering my house is worth ~175k and the house being built will be worth around 400k, will people who can afford my house be willing to have a massive house right on top of them? This is really worrying me, and I could see myself having to take a huge loss to sell.
If you were in the market for a 175k house, would it bother you if your neighbor had a 400k MUCH nicer home?
If anything, your house is worth a bit more when a house that is twice the value as yours is built right next to you. It might seem awkward and out of scale but I'm certain the owners did the research to establish what value house that area could sustain for resale.
What is likely going to happen is some other owners will be updating and adding on to their houses and start to bring up the level of those smaller houses (relative) like yours up to the scale and detailing of the newer house. It may take a while but at least be happy that folks are investing like that in your area and it is not in decline.
I live in an area where houses are from all different eras over 100 years and are of wildly varying sizes and it doesn't hurt values around here- it is a unique market to be sure but the cottage's values benefit greatly by the much larger and better outfitted houses next to them.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by tonybarnaby
Why would they need it when they already have a massive new house?
More yard space, pool, tennis courts, lots of reasons, Doesn't hurt to try. That house could actually help increase your value if you sell after it's completed, but you may have to do some work to give yours more "curb appeal" so it doesn't look shabby by comparison.
The neighbor is really taking more of a risk; that house is out of place in your neighborhood and might be hard to sell. Unless the neighborhood is moving upscale, in which case you could do well when you sell to someone who will gut renovate or rebuild.
The neighbor is really taking more of a risk; that house is out of place in your neighborhood and might be hard to sell. Unless the neighborhood is moving upscale, in which case you could do well when you sell to someone who will gut renovate or rebuild.
They're the only nice house on the block. It's a working class neighborhood where people don't have 90k rv and a ton of expendable money. They will always be known as the big brand new house on the block.
More yard space, pool, tennis courts, lots of reasons, Doesn't hurt to try. That house could actually help increase your value if you sell after it's completed, but you may have to do some work to give yours more "curb appeal" so it doesn't look shabby by comparison.
I'll bring it up but it's a long shot. Would be an easy way out, though.
If your neighborhood is near a desirable area, your home will be attractive to other investors who will want to tear it down and do what your neighbor is doing. It's called infill redevelopment.
In our city, by leaving the front facade standing and incorporating it into a new structure, a builder can technically call it a "remodel" and only has to pay those associated fees instead of the higher fees for new construction.
Either way, it probably won't kill your resale potential.
My neighborhood is most definitely not in an area investors would plan to come and do tear downs. This is a single house situation.
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