Home Buying in Clovis>Question Details

nathanjlong, Home Buyer in Clovis, CA

Purchasing a new home that backs up to a dentist office and has a lower value surrounding neighborhood

Asked by nathanjlong, Clovis, CA Mon Jul 2, 2012

I'm currently looking at purchasing a brand new, beautiful house that has everything I'm looking for, but I'm suspicious about the location and am concerned that the house might be difficult to resale. The house backs-up to small office spaces like dental offices, etc. The houses across the street back up to a commercial retail space that contains office supply stores, a Target, etc. The surrounding neighborhood has houses from the 1970s and were recently selling for half the value of the new house i'm looking at. The house I'm looking at is brand new and is significantly larger than the houses in the surrounding neighborhood.

How are all these factors going to affect the resale value of this house? My gut is telling me that the surrounding neighborhood is going to continue to get worse which will drive this house's value down. Also, the fact that the house backs up to commercial space will make it more difficult to resale and further prevent the house from appreciating.

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Answers

7
I recently sold a property to a client that had almost the same kind of circumstance. I informed them that they may have some resale issues, and there respinse to me was the home is just like beauty, it is in the eye of the beholder. The property is going to be for a certain type of person, not for everyone. That individual will be the make or break when it comes to resale. If they love it and have the means then you may get waht you want eventually out of the property. As you are also aware it is located near a business community, that may have its down falls yet once again it will be up to the future buyer. It is difficult to say exactly what is going to happen in the future with the sales and property values, but if you plan on living in it for a while, and it is brand new like you say it is then you should not have to much to worry about. But if you are paying for the property and it is 2 times more expensive then the surrounding properties, then I would be careful when it comes to making said purchase. If you place yourself in a negative situation from the start then the only thing that one can say is expect the value to not be what you are paying for a while. In time you will eventually have equity, just to tell you when is going to be more difficult then the average purchase. I hope that all considering that you and your family have happy house hunting days ahead of you, and if this is the home for you, then I hope that you have a good transaction, and your dreams have come true.

Have a wonderful day

Michael
1 vote Thank Flag Link Mon Jul 2, 2012
I would say listen to your gut and move on. If you buy this house, your misgivings will haunt you. You will not be happy in the end. Go find a home in a location that you are happy with.
1 vote Thank Flag Link Mon Jul 2, 2012
If you like the place I would say go for it, because if it is selling for less you can pay it off sooner, and its just a smaller investment than a better placed home, and the dentist hialeah, fl could be convenient
0 votes Thank Flag Link Wed Jul 31, 2013
You never want to settle for your house, especially if you're dubious about the neighborhood. Having a dentist office right there will keep a constant revolving door of people passing by your house, and that can be a good or a bad thing. Still, if you have doubts, I would keep looking. http://jphilippdentistry.com
0 votes Thank Flag Link Mon Aug 6, 2012
Excellent advise being provided.

Eric advises if you have misgivings in the beginning, they will surely haunt you.

Michael warns purchasing a 2x average area price will make you vulnerable to market and resell conditions.

If what you are saying is true, it is highly unlikely an appraisal will suport the price. The banks truly have the game rigged. You can anticipate an appriasal issue.

Now comes the only thing that really matters. "Is this the life style you want?" Some prefer the opulent monotony found in those walled communities behind the security controlled gates. While others seek a community of diversity, walkable and possessing a central core, having architectural interest, mixed economics, you know, something more reflective of reality. For many, the privilege of living is such communities required them to bring extra cash to the closing table to offset the banks value suppression methods.

The subject home, however, does not align with either description, therefore, the buyer after you will have exactly the same issues you are wrestling with. Ignoring one's intuition is often costly.

Best of success to you
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041 - http://www.RealEstateMadeEZ.us
0 votes Thank Flag Link Tue Jul 3, 2012
Location, Location, Location Is still the most important factor In Real Estate. It is an old adage, but still true!
0 votes Thank Flag Link Tue Jul 3, 2012
Are you having a hard time finding a house that has everything you are looking for for this price in any other location? If so, then you have your answer.
0 votes Thank Flag Link Mon Jul 2, 2012
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