what does a high traffic street behind your home do to property value??

Asked by Kj, Westminster, CO Sat Mar 14, 2009

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Suz A’s answer
Suz A, Agent, Longmont, CO
Mon Jul 8, 2013
Though this question has been rehashed sufficiently, I have a few suggestions.

When considering buying a house next to the road, you do want to spend some time on a patio if the patio is on the road side of the house. During the afternoon rush hour, you might find the noise fairly loud.

With lending loosening up, there are more buyers out there and a few are willing to look past road noise so they can move out of their rental.

Sellers are in the driver's seat these days. But that doesn't mean sellers can get too aggressive on price.

A home that has noise coming into the house can be upgraded with double or triple pane glass in windows. There is something called white noise that can eliminate some noise in the interim. But someone stretching to get into that home is not going to be able to afford an upgrade for a while. They have to be motivated. The seller has to show he is willing to negotiate. If the price isn't right to begin with, buyers will stay away in droves.

If you read other posts here, you'll see I'm not in the minority on this.
1 vote
Chip Bruss, Agent, Boulder, CO
Tue Sep 22, 2009
Kj - Busy roads will always affect resale value, mainly because it will limit the number of future buyers willing to purchase the home. Make no mistake, there are lots of homes on busy roads that get bought and sold everyday. But just as you expect a discount when you purchase the home, you will have to give the same discount when you sell the home. You may get lots of advice about staging and remodeling, but in the end, it all comes down to price and marketing. There are plenty of people willing to purchase a home on a busy road, you just have to know how to reach them. Hope this helps. -Chip Bruss, Keller Williams, Broomfield, CO
1 vote
Lillian Live…, Agent, Lakewood, CO
Sat Mar 14, 2009
It lowers the property value, in relation to prevailing neighborhood prices. There is no set amount , as each situation will be unique. Figure on about 10% as a place to start the figuring.
Good luck with that.
1 vote
Ron Rovtar, Agent, Boulder, CO
Mon Jul 8, 2013
This is an older question that takes on a fresh meaning in the current market, at least it does here in Boulder CO. About the time this was asked I found myself trying without success to sell a beautiful home in a nice neighborhood that backed to a well-traveled road. The house was offered at a discount, but still could not be sold in that higher inventory market.

Jump forward a few years. The house went back on the market and sold fairly quickly. So did a lot of other houses that had similar troubles during the recession. They are selling now because inventory is low and buying activity has increased.

But what happens when the market becomes becomes more balanced? Or, worse yet, what happens during the next buyer's market? I'm guessing that the buyers of these properties will have the same problems as previous owners.

So I'm warning my clients about the potential problems. And I try to carefully sketch out the negative possibilities. But, as always it is up to them to decide if the risk is worth it.

Ron Rovtar
Prudential Real Estate of the Rockies
Boulder CO
0 votes
Bev West, Agent, Greeley, CO
Mon Jul 8, 2013
The 3 big things to remember are Price, Condition and Location. Location, Location, location. Be careful cause it can affect the price when you sell again.
0 votes
Ron Rovtar, Agent, Boulder, CO
Mon Aug 13, 2012
Hi KJ:

Road noise does affect the price you can get for your home, when you buy and when you sell. But there is another factor that changes considerably depending on market conditions. When the market tilts toward buyers, it can be very difficult to sell a home where road noise is obvious. When the market is more favorable to sellers, these same homes can move more quickly because competition in the price range is less. In fact a number of such homes that could not attract buyers during 2009, 2010 and 2011, have sold rather easily this summer.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
0 votes
David Janis, Agent, Boulder, CO
Mon Aug 6, 2012
Most people don't want to listen to cars droning by at all hours of the night. This can also be a dangerous situation for families with children. More than likely a busy street directly behind the home will lower the value.
0 votes
Suz A, Agent, Longmont, CO
Sun May 20, 2012
There are few exceptions when it comes to noise. There are probably more people who will choose to live away from a highway than choose to live there. Not every home can be located on a quiet cul de sac tucked away in the middle. And for some, that's just fine.

If you become accustomed to noise, you might have to seek it out if you are accustomed to the sound of trains and cars lulling you to sleep. Personally, I am fond of the train horn that sounds when the train comes through Longmont. I might not buy a home next to the tracks, but it is something I am accustomed to. It makes me think of my train ride from San Francisco to Denver and I always smile.

Your home may sit on the market longer for a home close to high traffic. Ample marketing may be the solution you need, and I'm giving a thumbs up to Chip Bruss for mentioning it before me. It can impact price if you don't give it plenty of marketing.

PML of Longmont, CO
The property movers
0 votes
Kelly O'Brien, Agent, Broomfield, CO
Mon Mar 16, 2009
KJ--I agree with all of the previous answers and usually factor about a 5-10%+ discounted price on a typical market analysis. I would also just add that the only way to further counter an objectionable location such as backing to a busy road is through making spectacular upgrades/improvements to your home's condition to divert some of the focus away from the road noise. The one big mistake repeated by sellers is that they try to disguise the road noise with closed blinds, drapes, fans etc, and it's just ridiculous. Working with an experienced agent and a home stager will provide the best results in preparing your home so that it meets the right value mix for the market, even with the less-desirable location. These homes still sell in this market but it typically takes much longer if not priced agressively. Even though sellers have a hard time believing their home isn't worth as much as other similar models in the neighborhood, the buyer feedback that we see indicates that 80% or more of the buyers that look at your home will object primarily to the location.
Web Reference:  http://obrien-realty.com
0 votes
Bill Eckler, Agent, Venice, FL
Sun Mar 15, 2009

It will seriously impact the quality of life in the neighborhood, make it more difficult to resell, and affect the future sale price of the home.

Road noise is a very quick turn off for most buyers and should be a major consideration.

Good luck
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Mar 14, 2009
Depends on size of town, and etc.

In most cases "road noise IS NOT MUSIC" to hears of home owner. Can be difficult for resale

~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
Web Reference:  http://www.lynn911.com
0 votes
Brian Burke, Agent, Highlands Ranch, CO
Sat Mar 14, 2009
It does effect the value of the home and more import is the fact it will lower the number of buyers making offers.
There are too many good homes without high traffic streets to choose from. Remember, Location, location, location.
0 votes
Penny O'Brien, Agent, Las Vegas, NV
Sat Mar 14, 2009
well, that's a great question with hopefully a respectable answer. When 'you say high traffic what does that mean? Is there the chance of semis and big trucks on a daily basis? How many lanes of traffice? Do you persee traffic increasing? How much distance do you have between your backyard and the street.? Does your home sit really close to the street or is it set back? Do you have any kind of a view from your backyard that is becoming? All of these questions make up the snswer to your question. Some people do not mind street traffic noise, others do. Yesterday I was out with a buyer and he chose a place that the side yard and backyard were very close to the street. I asked him if it would bother him to hear the street noise and his answer was I used to live in Lower Manhattan Penny I think I can deal with the little bit of road noise here. So there you go, it's a personal choice.
Web Reference:  http://Pennysproperties.com
0 votes
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