New road development affecting home prices
I own a house in Colorado Springs, co & heard from a friend on the zoning and planning commission that there will be a new road going in behind my house, with an easement and the potential for the city to buy my property further down the road.
The question that I have is: who thinks this will RAISE the price of my property and who thinks this will DECREASE my property's value.
And why do you feel that way?
My house is on 5 acres, so I can split a small part of my lot, build a new home & get fair market value for 2 homes rather than 1, right? Has anyone had experience with these topics? What was your outcome?
@Cody Hyman If you are in the LINE of Improvement, I would Expect the property to go up a lot in value. Building a new home and Hoping the government will pay What You Think fair market value is, and what they consider far market, might not be the same. In springs they are experiencing people putting in offers Over the List price. This is driving prices up more. The Government doesn't fight with potential other buyers. They are the ONLY Buyer when they decide to take it over. They could care less that everyone else is over offering on these houses. That being said, who knows how long they will take to actually buy your lot with houses, or they decide not to. If you are building a house, make sure you are doing it for the Cash Flow you can gain from it. That way no matter what they Government does, you can still make money while you wait.
@Cody Hyman - thanks for posting. Where property in surrounding homes are likely to face an increase in value due to being in the path of development, those that end up being directly on (or soon to be) major roads will likely face a decrease in value for numerous reasons, not the least of which being a presumable increase in traffic in what was once their quiet backyard.
Should property be condemned for eminent domain, the process by which municipalities have the ability to acquire land for "public good", the owner of the property "must be given fair compensation after a "due process" in which a commission of "impartial" landowners or a jury (landowner's option) determines fair market value. https://eminentdomain.uslegal.com/state-laws-on-em...
Generally speaking, the ability to split a parcel to add an additional residence is the mother of all value adds. However, with too many moving parts to consider, the second part of your question requires considerably more information to properly address, such as the property's location, its current zoning and density requirements, existing covenants, etc.
All the best!
the road appears to go on the side of the property line - they already have part of a road stubbed out on both ends of my property. They just need to grade and pave, really.
Thanks for the advice, that makes a lot of sense!
thank you both for taking the time to respond!
Are there any specifics I should be looking at/asking my friend in zoning and planning in order to get a more accurate idea as to the future value of the property increasing or decreasing?