Expert: liznarr - 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
Hi Lynn,

Wow, this is a loaded question.  Without having seen the property or the subdivision, I can only give you general answers.

First, whatever objections you have to this property will most likely be the same objections a future buyer will have at resale time.

You say the traffic is not heavy now, but what will it be like in the future?  Is there vacant land at the rear of this subdivision set aside for future development?  If so, you will want to consider the increased traffic that could come as part of expansion (unless there is another, separate entrance planned).  

Even if a separate entrance is stated as being planned now, that may or may not come to pass.  Most counties require developers to have traffic studies done before increasing traffic in areas/subdivisions when new roads are being considered.  Ask the developer of this subdivision if there is a master plan available for you to see.

There are no two buyers alike, just as there are no two properties that are exactly alike.  Personal preferences come into play here, and some homeowners actually prefer a corner lot.  I will, however, add that a corner lot at the entrance of a subdivision would, in my opinion, be the least desirable corner lot location.  Again, it would depend on the traffic and noise level.  What is objectionable to one person may not be objectionable to another.

As to the smaller back yard, many people – like you – prefer a smaller area that is easy to maintain…again, a matter of personal preference.  I prefer properties backing up to a wooded area, as you say this one does.  The bigger question I would have is, how long do you think the wooded area behind this house will remain wooded?  

You didn’t say “who” told you that resale for corner lots in your area is poor, but I don’t believe this is necessarily so.  Think about it:  In every subdivision, on every street, there are corner lots.  Are all the homes on the corner lots selling for substantially less than others in a subdivision or area?  If this is a verifiable, documented statistic in your area, then, yes, stay away from a corner lot.  If not, then you have to weigh your personal preferences against the price and condition of the home.  

If this property has been on the market for a while, consider offering the Seller even less to compensate for whatever adverse factors you want to outline to him.

I hope the above is helpful and points your thinking in a direction you’ve not yet gone.  Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth