Expert: Dick Dennis - 7/6/2008

Question
I'm considering buying a four-year-old former model home that's located on a corner lot at the entrance of a relatively new housing development. The model is being sold at at GREAT price and is in wonderful condition. I've been told that resale value for corner lots is poor.  The property has a small back yard (which I prefer) that backs up to a wooded area. The cross street for this home has no side walk and has a fair amount of traffic, but is not noisy or heavily traveled. The cross street is also separate from this property by landscaping (mostly pine trees and substantial shrubs). Do you think the resale will be a major issue?

Answer
There are too many unknowns, Lynn. There are too many questions that need to be settled before you can ascertain the value of any property. 1. How far is the property from conveniences? 2. Is the housing development any where near a negative, like manufacturing, railroad yard, older rundown neighborhood? 3. How far is it from schools? 4. And nowadays, how much driving time is needed to go to work? 5. It depends when the property will be resold. 6. Have you compared the property with other similar sales?

It is obvious you have fallen in love with the property, Lynn. But if you can divorce yourself from your emotional reaction to the property and check everything out, you may save yourself anguish later on. If the property was so wonderful, why hasn't it sold by now? Have you hired a property inspector to make sure everything is all right? Even new properties need inspection. What will the cross street be like on heavy rainy days? Will there be problems with the backing up to the wooded area, like animals and pests?

At one time I owned a house on a corner lot and I had no trouble selling it. But it was close to everything, short distance to a park, near schools on very quiet streets and a fine neighborhood. It is very difficult to give a value to a property without actually seeing it rather than discribing it on the email. No appraiser in his right mind would be able to do it. Just do your homework and research on the property before you put your money down. I do wish you well.

Dick Dennis