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I'm curious what some of the experts around here think the discount is for a high end house where the original lot was subdivided and a second house built in front.
Heres the one I'm looking at. It ended selling for $400 per s.f. so I'm just wondering how much it could have gone if it were a normal lot.
When your county does an assessment they will discount for the flag lot. That is one place to look. Also the appraiser should have a line item regarding the location. BTW, I am not an expert, but I do read the county docs. It is only the land value that is affected.
I would evaluate a house on a flag lots just like any other house. As long as there is sufficient parking and the driveway back to it is wide enough, I don't think it is a negative to have no street frontage.
There would be reduced street noise and no kids walking across the front lawn.
I would evaluate a house on a flag lots just like any other house. As long as there is sufficient parking and the driveway back to it is wide enough, I don't think it is a negative to have no street frontage.
There would be reduced street noise and no kids walking across the front lawn.
Yeah there's a garage and the driveway is standard width.
What I thought was really strange is here's a concrete wall literally 10 feet from the front porch dividing the two properties.
I can see how it is more private due to being offset but there's absolutely no curb appeal and considering how impressive most of the other homes in the area look I would think it would be worthy of downward adjustment.
Quote:
Originally Posted by luv4horses
When your county does an assessment they will discount for the flag lot. That is one place to look. Also the appraiser should have a line item regarding the location. BTW, I am not an expert, but I do read the county docs. It is only the land value that is affected.
That house is spectacular.
I went to the open house for it and they restored is quite nicely. It's a real gem.
Unfortunately the tax assessments in California won't have any note about the location. Our taxes are just the sale price x 1% and then increased 2% annually.
I'm curious what some of the experts around here think the discount is for a high end house where the original lot was subdivided and a second house built in front.
Heres the one I'm looking at. It ended selling for $400 per s.f. so I'm just wondering how much it could have gone if it were a normal lot.
I'm thinking between 10-20% off because it has no street frontage and there's another house sitting directly in front of it.
Anyone else have any experience selling/listing houses on flag lots?
In my experience, homes on flag lots (the rear portion of the lot) are sold for roughly the same price. But I am in an expensive area where desirability is based on proximity to the central business district/urban core. I could imagine if your home was in a suburb far from the urban core where pricing was mostly dependent on the physical size of a home (not the location) there would be some kind of discount realized. However, I think a 20% discount in almost every scenario would be considered excessive.
In hot markets they tend to sell for about 5% less around here. In the slow markets, like in the bust, it was easily a 10-15% discount. They were really, really hard to sell in the bust in my area.
The problem with your question is that it's a local question and a situational question as well. Whether or not you discount for it being a flag lot or not and how much you discount if you do are questions that can really only be answered by a local real estate agent. Also, as Silverfall points out, the effect of the flag lot may be increased/decreased depending on the health of the market. Lastly, it's also hard to say without seeing the lot in person. If there's sufficient space and appropriate landscaping in between the houses then that could possibly negate the fact that it's a flag lot.
You can't predetermine supply and demand. In my opinion, there's no uniform answer or set amount. This is a bit different than comparing a 3 car to a four car garage. If no one else is interested, the discount could be 30 or 40%. If there's multiple interest in the home, there could be little to no discount.
In hot markets they tend to sell for about 5% less around here. In the slow markets, like in the bust, it was easily a 10-15% discount. They were really, really hard to sell in the bust in my area.
Yeah that makes sense. Probably similar to unpermitted work. When the market is hot and people are just snapping up properties all cash it doesn't have a huge impact, but during a crash any problems will be a bigger deal.
The problem with your question is that it's a local question and a situational question as well. Whether or not you discount for it being a flag lot or not and how much you discount if you do are questions that can really only be answered by a local real estate agent. Also, as Silverfall points out, the effect of the flag lot may be increased/decreased depending on the health of the market. Lastly, it's also hard to say without seeing the lot in person. If there's sufficient space and appropriate landscaping in between the houses then that could possibly negate the fact that it's a flag lot.
It's definitely a local question. I was just curious to see if anyone else had bought/sold/listed homes on flag lots and what kind of experiences they had.
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