Home Buying in 95136>Question Details

Paul, Home Buyer in San Jose, CA

Buying home near train tracks

Asked by Paul, San Jose, CA Mon May 2, 2011

I'm in the process of buying this home (short sale) and wanted to see if the resale value would still be okay considering that it is near the train tracks. http://www.redfin.com/CA/San-Jose/51-Park-Essex-Pl-95136/hom…

I'm concerned that it might be hard to resell.

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9
Train tracks can have an effect on resale and deter buyers. Since you're buying the home take the time to find out how often the train runs and if it runs in the evening. Check on the noise of the "horn" too. I know of homeonwers in downtown SJ that complained about conductors blaring the horn in the early a.m. and were able to get changes implemented. From the aerial view, the house is in the middle of the block so the noise may be buffered. It's unlikely there is train vibration from the center of the block also. All in all, you have a great purchase.
1 vote Thank Flag Link Mon May 2, 2011
Paul,
The current discounted price already reflects the impact of the train tracks nearby. Yes, upon resale, you'll have to also offer a price discount relative to neighboring houses. That said, the train going by on Monterey is a CalTrain, which doesn't go by that frequently. So, if neighboring houses have appreciated, you'll still get to profit along with them.

That location is still much better than many houses closer to downtown San Jose and near train tracks as many of those tracks are being converted to BART lines, which will see much higher traffic.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Mon May 2, 2011
I had a listing once near the CalTrain tracks. A buyer in contract backed out of the sale during his inspection contingency because he realized the train proximity. My next buyer, purchased the home specifically for convenience as he planned to commute on the train to work.
0 votes Thank Flag Link Tue May 3, 2011
Hello Paul~
What you are paying for this home. You are the one that will have to listen to the noisy go by. If you feel the lower cost to purchase is worth the noisy well there is your answer. When you go to sell the train will still be there... not sure about the market. Compare a home in this area that has SOLD away from the tracks and one that recently SOLD near the tracks. This will not change. When the market is hot buyers are going up against multiple offers. By the way the market is hot with bank owned home, they are receiving mulitple offers just in case you don't know. But the obsolesces do not change, when the market cools these are the homes that take the first hit. Agents do not have crystal balls, but advise our clients to choice what is the best interest to you and your family. The resale should be a concern but it will depend on how long you will live in this home. If it is a life long commitment there is value in this, but if you are planning on 2-5 years that is going to be a decision based on your needs. ... railroad tracks that are live will sell less than a property a few blocks away. I would ask a few neighbors, go by at different times, when you will be entertaining, sleeping, weekends, etc.
0 votes Thank Flag Link Mon May 2, 2011
The price is reflected in the current market for this home. Since it is a short sale, the seller's bank is going to determine what they will sell it for. To answer your question, other buyers will ask the same question when you go to sell. I for one like the sound of a train (during wake time) other people not so much. If you haven't already visited the house during various times of day, do it now. Weekends, nights, commute time, when school starts and end, etc. to get a feel for what it's like to live in that neighborhood.

Also research when the train runs and if there are any proposed changes to those times in the future.

Good luck to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Mon May 2, 2011
Hi Paul,

Good luck with your purchase. Perhaps you should have your Realtor pull comps for homes in the area. Being equipped with solid data may help you find the answer you are looking for. The sales history of the neighborhood and how it compares to other neighborhoods nearby that are not within the immediate vicinity of the tracks is important information to understand and review. Be certain the neighborhood that you are comparing to also feeds into the same school district as the school district can also have a great influence on the pricing. As noted below, you should see a pricing discount as homes near the train tracks are desired by fewer buyers than those that are not.

All the best,
April
Apirl Tavares, GRI, ASP
DRE License #01742179
Free Santa Clara County Market Trend Reports: http://april.rereport.com
Web Reference: http://www.AprilTavares.com
0 votes Thank Flag Link Mon May 2, 2011
Hello Paul~
What you are paying for this home. You are the one that will have to listen to the noisy go by. If you feel the lower cost to purchase is worth the noisy well there is your answer. When you go to sell the train will still be there... not sure about the market. Compare a home in this area that has SOLD away from the tracks and one that recently SOLD near the tracks. This will not change. When the market is hot buyers are going up against multiple offers. By the way the market is hot with bank owned home, they are receiving mulitple offers just in case you don't know. But the obsolesces do not change, when the market cools these are the homes that take the first hit. Agents do not have crystal balls, but advise our clients to choice what is the best interest to you and your family. The resale should be a concern but it will depend on how long you will live in this home. If it is a life long commitment there is value in this, but if you are planning on 2-5 years that is going to be a decision based on your needs. ... railroad tracks that are live will sell less than a property a few blocks away. I would ask a few neighbors, go by at different times, when you will be entertaining, sleeping, weekends, etc.
0 votes Thank Flag Link Mon May 2, 2011
Hi, it really depends on the buyer. I have worked with people that move to the suburbs from the city and are used to that type of noise. Then there are the other buyers that won't touch it. I live about 300 feet from the highway and a train and to be honest I have gotten used to it. There is a buyer out there for every home, it just depends how long it takes to find them. I would make sure everything else is in tip top shape when you go to sell, so if that's one of the only negative it's better then a whole list.

Chris
Web Reference: http://raveis.com
0 votes Thank Flag Link Mon May 2, 2011
If those are busy tracks the value is definitely affected. Trains are annoyingly loud that close to a house.
0 votes Thank Flag Link Mon May 2, 2011
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