Do You Buy on Busy Roads?

[Charles Horning]

I'm curious as to who buys property that sits on busy roads or "double yellows". Have you found these properties to be any harder to sell for a flip? Also does it affect your appraisal value? I've been told while these properties may be slightly affected when going to resell, they may not affect appraisal values as much. I know this depends on factors such as area, noise pollution, proximity, etc...

Does anyone have insight on this topic?

[Dominick Johnson]

It won't effect appraisal value, however, it will be more difficult to sell than the exact same home on a cul-de-sac. As a general rule of thumb, I never buy a property that I would not feel my family would be safe living in. My first house was on a busy street and a drunk driver hit and totaled my car that was parked on the wide shoulder in front of my house. If that happens to a tenant they cant drive to work, have to buy a new car, stop paying rent, need to be evicted...avoid that.

[Mike Hern]

Quote from @Charles Horning:

I'm curious as to who buys property that sits on busy roads or "double yellows". Have you found these properties to be any harder to sell for a flip? Also does it affect your appraisal value? I've been told while these properties may be slightly affected when going to resell, they may not affect appraisal values as much. I know this depends on factors such as area, noise pollution, proximity, etc...

Does anyone have insight on this topic?

NO, I don't. I did buy on a busy road and it was very, very difficult to sell when the time came.

[Brad S.]

Sorry to contradict @Dominick Johnson, But, in my experience, as an Appraiser, it will most likely always affect appraisal value, or the appraiser is not doing their job. Appraisal value is just a reflection of market value and if the demand is less for those properties on a busy street, then those properties will sell for less. I personally have never had a situation where it did not affect the value, but I suppose there may be areas where it won't. Remember the old adage, "Location, location, location." That is a popular saying for a reason.

As a Broker, I have had clients that would not even consider buying a property on a busy street. I had showed them perfect houses for them, but they were adamant about not be interested, and I don't blame them. I have also had clients that found a house that was great for them, and they were willing to put in an offer, but only for a significantly lower price than other properties they had seen away from the busy street. So, YES, it does affect value, demand, appeal, and may definitely affect how long it takes to sell.

That said, depending on the market conditions, it may not be a significant difference. I have seen markets where inventory was low, the market was hot, lots of demand, etc, and those houses still seemed to do ok, but generally, they are affected somewhat.

You get more noise nuisances, pollution, crime potential, possibly less street parking availability, etc, and many buyers steer clear for those reasons.

[Eliott Elias]

It may not affect your ARV, but it will limit your buyer pool.