Does anyone know if there have been studies that determine whether or not placing big box stores next to single residential homes reduces home values?

Asked by Dee, North Port, FL Tue Jun 18, 2013

Dollar General is trying to place one of their stores in our neighborhood which seems to be a very poor fit. The neighbors are afraid of what this can do to the value of their homes. Looking for facts. Thanks!

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Antonio Vega…, Agent, Saint Cloud, FL
Wed Jun 19, 2013
Yes, there is no doubt. And I will have to comment on Annette reasoning below...not on her scientific explanation, that sounds quite correct...but on the emotional factors. Maybe the "brand" does matter. I know lots of buyers that refuse to purchase within a close distance to a Walmart, but would pay extra to be near a Target or a Publix. A Dollar General is a smaller store and should have minimal impact, but if a series of discount stores begin to open in the neighborhood maybe it's time to consider moving, because home values will be affected. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
1 vote
blueticketz, Home Buyer, Grand Rapids, MI
Tue Aug 27, 2013
Commercial doesn't affect real estate. Types of crime, availability of high paying jobs, and social calm all effect sale price. Not all dollar generals are put in poor parts of town. If it is a high traffic road I would have to say otherwise. Step outside. If your neighbors are more apt to stare, yell, shout, cry, criticize, slack off, nit pick rather than wave, giggle, garden, with quiet and peace. You can kiss your home value goodbye.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Jun 19, 2013
Homes (residences) located on high traffic streets are not as desirable as the identical home on a low traffic. quite, tree-lined, brick street. Their value has been adjusted accordingly. But you already know that.
A new grocery in a location that has no grocery creates a 'Walkable Home' region that will add value and a safety-net for those buying in that region. (a potentioal of $16,000 each and every year) This is a major asset. Those resistant to change will not ackknowledge this, but you know that already also.
A home already located on a busy street, and the street gets busier, has already been valued properly. In that situaion, only the 'special' buyer would be interested. When there is a limited buyer pool, the house is priced accordingly. You know that also.
A study is done EVERYTIME a real estate professional prepares a home for sale or presents a purchase offer on such a home. We do compare and adjust for high traffic and residental streets. There most deffinately is a difference, but you know that. HOWEVER, the differance is NEVER determined by the 'Brand" occupying the adjacent space (use does such a bar, liqour store or 24 hr carry-out)
Publix, Home Depot, Lowes, Walmart, shcool bus depots, are the traffic generators for which you must have concern.
So the answer is YES.
And the result is, the adjustment has already occured.
Now Dee, your problem becomes proving the entire neighborhood will be effected. (FACT: IT WILL NOT.) The adjacent homes (or land) may increae in value due to greater commercial potential.(increased traffic (FACT). Only the real estate sharing a boundry with the mentioned store are relevent to a study. The folks at Dollar General DID complete a study that revealed a significant population exits in your area that will benefit from the presence of this store. Is that a fact you are willing to hear? The facts are the facts don't support the direction your emotions are carrying you. You already know that. It really does not matter what is shared here, you going to the council meeeting to protest ...RIGHT?
Sorry, but based on the facts you shared in your question, the facts will not support your position, but you already know that.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes
Tammy Hayes, Agent, Port Charlotte, FL
Wed Jun 19, 2013
Talk to the economic development office or the county commissioners.

Tammy Hayes, Realtor
RE/MAX Palm Realty
0 votes
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