AboutMatt Heisler Expertise I can answer questions about buying or selling your home, and questions about the market in Massachusetts, with detailed answers if you ask about my specific area in Mass, Metrowest. I can help with Investment property and the basics of financing. How to construct deals and how to find bargains and how to protect capital. Land, home sales, rehabs, fix and flips, income property are places where I could be able to assist you. I can also answer basic questions about foreclosure, short-sales, 1031 exchanges, and basic questions about how the economy and credit markets are functioning and how that affects you.
Experience My company sells residential real estate in Metrowest, and we have had a been selling real estate in the area for 20 years.
Question what happens to the value of existing homes/real estate in a particular area when developers come in and put up high density homes/townhouses, etc.? our house is in a neighborhood/subdivision that is relatively new--7 yrs old. but there are also houses near us that are older. the roxborough (CO) area is currently not a densely populated area. we do have one strip mall in our neighborhood currently which will expand once the new homes get built. do you suggest we sell before they build?
Answer Hello:
Your property value will fluctuate depending on the status of the project, and the project itself. We'll look at both.
Timing:
1) Stage One - Possible Development location
Most towns designate high-density areas on their zoning maps. When you bought your current house, a good buyer's agent would have informed you of your proximity to denser or commercial/industrial zones. At this stage, there is usually minimal impact.
2) Stage Two - Proposed Development
This is when the developer goes before the town to request permits. At this point in time, the value of your property dips a little. If you don't like what's proposed, move quick.
3) Stage Three - Approved Development
At this point, your property is now affected by what I call "fear of the unknown". People want to know, "what will it look like?" and "how close will it be to my house" and "how much will the traffic be impacted". None of these questions are easily answered until the project is complete. In most situations, if the proximity is close, your valuation will decline significantly at this time. Sometimes 10, 15, or 25%. Much of this depends on how many of your neighbors sell concurrently. During this time, I advise owners to stay put, 95% of the time.
4) Development Complete
At this point, your property will increase in value from stage 3. Depending on what they built, and whether people don't feel it's material, you may be back to stage one or better. To know more, let's look at some project factors.
Project Factors:
1) Industrial: If a factory goes up next door, you will be severely impacted in any residential location.
2) Commercial: Almost as bad as Industrial, but if there are limited traffic and visual impacts, the impact will be minimal.
3) Apartments: If it is a large apartment building, there will be a significant impact. People expect a discount for living next to renters. If there's a large "subsidized" component, this applies double.
4) Condos: Condo's bring traffic and visual issues, but they own their own units. As long as the visual impact isn't terrible, this is generally not considered a huge deal.
5) Single Family housing: If the homes are nicer than yours, you may actually appreciate (gain in value) when the development is done. You will still be impacted negatively while construction is underway.
This is just a rough overview of common situations. Research your situation and your options, and good luck.
