Homes next to freeway - Good or Bad (from pricing perspective)?

Asked by Ricky, Farmington Hills, MI Mon Aug 27, 2007

We are interested in purchasing a home that is located quite close to freeway (200 ft or so). One can see (and hear) it clearly from the backyard and my wife is concerned about the noise factor. Will the traffic noise be a big deal (even with windows closed)? I am thinking we may be able to use it to our advantage in the negatiations if we make an offer.

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5
J Lo, Home Buyer, California Glory, Brentwood, CA
Mon Aug 27, 2007
What you save today will be the concession you give tomorrow. Realizing this you are ahead of the pack.
1 vote
Michael Ford, Agent,
Mon Aug 27, 2007
I agree completely with the other respondents...I urge my clients to avoid such defects as they have an uncurable negative effect on value. Freeways usually get busier, and only occassionally get quieter (soundwalls). I once rented a house behind a tennis club...when i rented it it was noon on a tuesday (nice and quiet). The first weekend we were there the games started at 7 a.m. Here was the soundtrack, "pop, pop, pop, pop...grunt, damnit".

if the home is to be rented and it cash flows...then the advice is different. you will always be able to find a renter who will not mind the noise. If you are getting a no brainer price then that would impact the decision as well. Generally though I've seen few homes that had enough other benefits to overcome a freeway visual and audible.
1 vote
Arthur G. Wh…, Agent, Alameda, CA
Mon Aug 27, 2007
You can always tell when conditions are shifting by the noise of the freeway. In a seller’s market the noise is insignificant; in a buyer’s market it’s a major nuisance and possibly a deal killer. Yes, you might get a better price due to the freeway noise, but don’t be surprised if the next buyer wants to offer you a very low price when it’s your turn to sell. Best practice: evaluate your prospective purchase by comparing it to closed sales, current offerings, and recently expired/withdrawn properties that are similarly affected by the same freeway noise. Right now I have a listing on a very busy street, close to a freeway. My clients bought it in the fever of a seller’s market. Now, with the tide turning in favor of the buyers, there are 3 properties sitting unsold on that block even though the prices have been repeatedly reduced. When buyers are able to find similar properties at affordable prices without the impediment of freeway noise, why wouldn’t they choose the other property . . . unless, of course, the noisy property was price lower, much lower.
0 votes
Pam Winterba…, Agent, Danville, VA
Mon Aug 27, 2007
Ricky

The key words in Real Estate are "location, location, location". You will never be able to change it's location. Your can use it's proximity to the freeway in the negotiation but consider when you go to sell. What is the noise level in the back yard and will you family be able to enjoy a summer bbq?

If the property backs or fronts to the freeway it is a major deterrant to many buyers. In addition to the noise will you pick up the fumes from the cars? I would encourage you to find a property that does not boarder a freeway. Good luck
Web Reference:  http://pamwinterbauer.com
0 votes
Deborah Madey, Agent, Brick, NJ
Mon Aug 27, 2007
Yes, you will be able to use it in negotiations on your offer. Your buyers, when you sell, will also do the same. If this property is in a development, the same model, in the same condition, but in a quiet area will command a greater price.

If you like the property, find the noise level acceptable, then proceed. Keep in mind when you sell, that it can take longer to sell near a highway in addition to a pricing concession.
0 votes
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