Just had an offer on a house to flip. Front of the house was quiet, no noise inside. Back yard backed up to a busy road with cars going by at 45-55mph. Constant traffic. Very heavy road noise in the back yard that was at random times as a car would go by, not a constant hum like a major highway
I think it would have an effect on resale.
The person I was going to partner with says it would have no effect.
Mute point as our offer was not accepted. But curious on everyone's opinion for future reference.
As an agent I consider it External Oblesence and it would detract some buyers. ARV was $390K
Hi John, I think often you would be correct but not always. In some communities or in some neighborhoods this does not seem to matter. You would need to do a matched pair analysis to determine what if any effect this might have. This can be difficult to do unless you have enough comps but you would need to see similar sold properties on the busy road and off to see what effect the busy road might have.
We have some properties like that in Phoenix. From what I've seen around here, value might not be impacted as much as DOM. It just takes the right type of person to be OK with the backyard noise.
What kind of noise cancelling exists back there already? Brick wall? Could you have added a few layers to the brick wall to help with the sound? Are there any trees lining the back wall? If not, could you plant a row of trees without having any power line obstructions?
The more you can distract a potential buyer from the traffic the better.
yes it would be an obstacle for some.
One of my friends has a rental that backs up to a parkway where cars zoom by 60-70 MPH. He planted Itallian Cypress trees close together about ten feet up the side of each neighboring fence and along the back fence.
The yard is fairly quite now in the back, it has been about six years and with lots of fertilizer they are about 20' tall. He also installed some sort of storm windows inside the house and you can't hear the traffic at all inside.
Even though I hate it , really hate it , bamboo works also , but get clumping bamboo , not spreading bamboo . The stuff I have grows close to 12 inches a day . But its a border between the yard and a busy road , , you barely notice the traffic
Appreciate the replies. We were $30k apart and couldn't put the deal together...I've dealt with busy streets front facing but normally the backyard is quiet. This was the opposite. A friend of mine sold a house front facing on the same street and said it was a challenge. Subject property was separated with a wood fence. Any one is interested on seeing a Sat View I'll message you the address
Anyway, Margins were too tight on this one to take a chance or raise the offering price ..all in $359 with an ARV of $389K.
$30K profit including my commission kickback. I can sleep better tonight knowing this one didn't work out!!
Good you passed on this. More negatives than positives on this deal. I definitely feel your price will be reduced when you sell. People are funny; some don't care but some it will be a huge deal. Like you said; glad the numbers didn't work. Better to wait for a better deal and not get desperate to make this deal work.
@John Weidner Just my 2 cents but I think it would be more difficult to sell because you would have to find a buyer who was OK with the road noise. I had a similar situation where I had my eye on a house in a nice subdivision but my subject was in the rear of the subdivision where it backed up to an Interstate Highway. I passed on the deal just based on the road noise I could hear when inside the house despite all the other positives it had. I personally just could not get over the road noise and I figured my potential end buyers would have the same issue. Even if they tried to justify it on it's other merits they would not be fully happy with the potential purchase and they would probably bail out of the deal as soon as they saw something that was what they really wanted in the first place.
The road noise or lack of noise will definitely affect resale. On the next deal, maybe see if their is something that can counteract the loud road noise that cannot be found in other homes in the area. For example; loud road noise, but a 0.5 acre lot compared to less noise with a .15 acre lot. In the end, it is about finding comps that are true comps in as many pertinent aspects as possible. On this deal it seems like maybe your partner wasn't discounting the price of the home when he probably should have been. Based on what you said, I think you were right in passing on the deal. Good luck on the next one.
I would not do it unless its a smoking deal. It will affect your selling price and it will dampen both buyer and tenant interest in the property. There are so many properties out there to flip that I would pass on this one.
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