Should seller discount price of home if backyard is busy 5 lane road, but front yard is on a quiet street?

Asked by buyer, Deerfield, IL Tue Feb 5, 2008

Backyard is Lake Cook road, Illinois. There is a city fence and at least 20 feet separating road from fence. Seller has planted trees to block out view. Little noise heard in home, but can easily hear traffic in backyard.

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13
Laura Cannon, , 60010
Tue Feb 12, 2008
This is a great question. For the most part, homes that back up to a busy street do sell at a price lower than comparable properties. In the current market, it is particularly difficult to sell a home that is on or near traffic. Real estate is, of course, location, location, location. I know that's a cliche, but it is true. I frequently find that buyers don't even want to look at a property that is close to busy roads.

So, what do you do if you have a home near traffic? You need to make sure your home shows very well and is priced slightly below comparable properties in your area. It is important to make your home stand out from the competition to a degree that reduces the negative impact of the location.
Web Reference:  http://askforlaura.com
1 vote
Michele Wils…, Agent, Lake Forest, IL
Wed Jan 9, 2013
If the home is in a marginal location, It shouls sell accordingly. While it might seem to be a good deal compared to other homes on the market in better locations, It will be discounted again when you eventually sell.
0 votes
Don Stein and…, Agent, Deerfield, IL
Wed Feb 10, 2010
This is a dilemma for both the seller of a home and for any potential buyers. But remember many homes back up to busy streets, face busy streets, train tracks etc. and they get sold. Chances are a better price could be negotiated once an offer comes in for the property. Don and I have listed and sold homes with the same type of "location" issues many, many times. Years ago, my own house backed up to a highly trafficed street, I bought it and when it was time to move I sold it! Give us a call if you need any additional advice.

Brenda Ferdman 312 518-1217
Don Stein 847 508-0098
Email brendadon@cbexchange.com
http://www.brendadon.com
Web Reference:  http://brendadon.com
0 votes
Eric Egeland, Agent, Buffalo Grove, IL
Mon Jun 29, 2009
The home should be discounted when compared to an equal home with a better location, but the price very well may be discounted already.

The best comparables for this property will be found on the same street. Many times there are no recent sales on the street (or at least of a home that is comparable anyway), so what I generally do is look for comparable sales in the immediate area with other lesser locations (busy street, backing to train tracks, etc.)

Eric P. Egeland
RE/MAX UNITED
http://www.DeerfieldsAgent.com
0 votes
Nancy Karp, Agent, Highland Park, IL
Tue Jun 2, 2009
Very likely the price already reflects the location. If you've looked at comparable properties and feel that the price does not reflect this, then make an offer that does. With the offfer you (or your agent) should provide the information on comparable properties that justifies your offer. At the end of the day, the house in only worth what a buyer is willing to pay for it, location and all.

I've done plenty of deals in Deerfield and Highland Park - usually the homes that are close to Lake-Cook or near train tracks sell at lower price than comparable homes that are not "locationally challenged."

If you are working with an agent, they should be able to advise you on whether or not the price reflects the location. If you are not working with an agent, I strongly urge you to get someone that can advise you, It can save you a lot of headaches in the long run. If you would like to discuss further, feel free to contact me directly at Nancy@NancyKarp.com or 847-226-5594.
0 votes
Cathy, , Barrington, IL
Sun Dec 28, 2008
Buyer,

I do agree that the factor is a "buyer and seller" consideration. How ever as a Realtor I Would have already addressed that situation with my seller and priced the home accordingly. If there is no noise in the home it then becomes a question of How much do you love the home you are interested in, can you live with some backround noise? You can aways negotiate a price when buying a home, in the end it is what the seller is willing to take for there home.

Good luck
If you have any questions please feel free to contact me at:http://www.cathyhornung.com
0 votes
Bill Eckler, Agent, Venice, FL
Mon Sep 15, 2008
buyer,

This factor is definitely a "buyer and seller" consideration.

If it were my seller I would request that it was taken into consideration while determining the listing price. As a buyer, this should be given strong consideration for resale value.

Good luck
0 votes
Richard Haus…, Agent, Buffalo Grove, IL
Mon Sep 15, 2008
That said - I'd use anything and everything you can as negotiation ammunition - in negotiation. Never hurts to exageragte the "road noise" issue. The prime thing you need to determine is the seller's situation - which can only be done through good "intelligence collection" You also need to get neighborhood assn docs & financials, know about upcoming plans in the area, take into account the quality of the school(s), and much more. Just because something "comp'ed out" at X a few months ago - doesn't mean that that should necessarily be the value today. You have to take into account interest rate conditions and market conditions (and you can use that as negotiation ammo as well - if it is on your side..) Since rates came down recently - that won't be a negotiation point however... (rates are inversely related to price..)
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sun Sep 14, 2008
I would think the listing price of the house should reflect the specific location and the effect of the location has on the home. Perhaps the listing price is already a 'discounted' price.

Ask your agent do a comparable analysis on the house you are interested in buying and see if all things equal, this house is priced lower than similar houses not backing up to a busy street. If not, then go and offer lower than what you would offer on the other houses and explain why.

Sylvia
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Sep 14, 2008
the answer is location, location location.... you should have an agent do a brokers price opinion. basically you will look at recent sales for comparable houses, look at their areas and adjust your price up or down for this or other amenities. this is only the true way to guage teh value of your home. price the house aggressively enough and low enough people will look, not to low so you can negotiate but not to high no one looks. this would be better than discounting solely on the road. goo dluck with your sale
Web Reference:  http://www.ScottSellsNH.com
0 votes
John, Home Buyer, Lake County, IL
Sun Sep 14, 2008
Just how far away from the busy road do you need to be for it to make a difference? I'm looking at a place that has 1 line of houses between it and Gilmer Rd in Illinois. To put it another way, the houses across the street are backing up to Gilmer Rd.
0 votes
Lety Ellswor…, Home Buyer, odessa fl relocated from gurnee,il
Mon Feb 11, 2008
As a buyer, I would not consider buying a home that backs up to a busy highway. Not only would I have to deal with the Lake Cook road noise, but when I try to resell it, this house would have the same problem. IT is not something you can fix. If anything, it may get worse. As a seller, it all depends on how much you want to sell the home. You will always find a seller, but when and at what price?
0 votes
Cathi Weaver, Agent, Chicago, IL
Tue Feb 5, 2008
Hi Buyer,

I suppose it depends on from what angle of the home buying/selling process you are referring.

If a seller has the home you described, their agent should give direction on how to price with comparative properties located in close proximity to the home.

If it is a buyer looking at the home and wanting a reduced price because of the location and it is priced "right" then there should not be a "discount" expected since the buyer is well aware of the location of the home beforehand. If the home is overpriced for the area, that is another matter.

Cathi
Web Reference:  http://www.cathiweaver.com
0 votes
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