Upcoming public structure(pedestrian bridge) adjacent to property would drive value down?

Asked by Int Buyer, San Anselmo, CA Wed Apr 11, 2012

Hello,
I am trying to buy a short sale property, while doing the property investigation I came to know that city is trying to build a pedestrian bridge across the back street of the property, and city engineer's office confirmed that construction will begin this summer.
Bridge will be adjacent to back fence/wall and high above the property, one can view the backyard and house from the bridge.
Does this bridge bring down the future value of the property? I asked the bank to reduce the price, but they came back saying they will do so only if appraiser recommends it. I am not sure if appraiser's takes into consideration of future developments adjacent to property.

Any thoughts/opinion would be greatly appreciated

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3
Kari Shea, Agent, San Diego, CA
Wed Apr 11, 2012
Hi,

As part of our business, we do land and property valuations. Many of the vauations involve an analysis of situations like yours that can effect value.

An appraiser cannot take the possibility of future construction that could effect value. They can only evaluate what is currently happening or what has happened in the past.

With instances like yours, we have been able to prepare evidence that have allowed clients to get a price reduction from a lender on bank owned properties. It is your agents job to figure this out. If not, feel free to contact us.

Best of luck,

Mark & Kari Shea
Shea Real Estate
0 votes
Marcie Sands, Agent, Poway, CA
Wed Apr 11, 2012
Int Buyer,

I think your concern will be a concern of other buyers at resale time. It is something when working as a Buyer's Agent I would point out to my clients. It is up to them if it is a concern or not. Depending upon where it is located, it may be a benefit to the neighborhood. (I am in Rancho Bernardo and have not heard of this bridge - where is it planned to be?) Does the property back a busy street?

You are wise to figure it in to the future value of the property. Has your appraisal been done yet? If your offer does not require an appraisal, perhaps you should pay to have one done independently or have a consultation with an appraiser on how it might affect this property.

Have your agent push for the price reduction you are seeking if you wish to continue with the purchase. The more back up data supporting that request, the better.

Kind Regards,

Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
Rancho Bernardo
760-644-1562
0 votes
Chad Basinger, Agent, San Diego, CA
Wed Apr 11, 2012
Hello Int Buyer,

The fact that you are concerned about this and asking the question should tell you something right there. You will certainly not be the only one who brings up the fact that the bridge will limit the privacy for this particular property. I always believe that properties are priced the way they are for a reason and quite frankly, this may very well be the reason you were able to get this property at the price you are under contract for in the first place. Of course, I do not know if that is the case, but it way have kept other would be buyers away. Having grown up and working that area, I'd be curious to hear what part of town this is taking place in. I'd have your agent (or yourself if you have no representation) bring this up with the appraiser. That is nice that the bank will even entertain the idea of lowering the price is the appraiser recommends it.

Either way, I'd take a hard look at the true ramifications of this bridge (how actively used will it be, will it pose any safety concerns, what kind of crowd will it attract, what hours will there be traffic, how long is the project expected to last?).......Best of luck!

Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Web Reference:  http://www.chadbasinger.com
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