will a new housing development raise or lower my home value?

[vash]

just jogged through a proposed area for new houses. condos, duplexes and single family homes. initially my concern is traffic. but jogging thru the area i realize the close proximity to my house. one section of area i can see at the end of my culdesac. if i could hit a golf ball i could smack the area. my house is an older small home on a big lot. i am coming up with an enlargement plan, to hopefully start at this time next year. or should i even bother? move? i want a highend kitchen, and additional bathrooms and bedrooms. plus enlarged garage.

[RANDY P]

If your home is in a subdivision then there are your comps since all your neighbors have similar floorplans, your age, etc. Comparables are defined as the homes like yours sold in the last year - that's what determines the value..

Concerning the neighborhood next door-

Depending on the overall quality of what's going in next door and whether or not it's luxury living will indirectly affect your values through desirability. If you have section 8 housing going in next door and all the homes in your neighborhood start selling for fire sale prices or turn to rentals to get away well there goes your value. On the other hand, nice desirable neighborhood will if anything cause your place to go up.

On updates -

If you are comp'ed out the value will be determined by the factors above - the homes have to be by description similar to your own and how modernized / updated your home is. If it's clearly updated and maintained the appraiser will assign less depreciation to yours. In other words find the similar comp, and depreciate it for age till it matches your property. The nicer yours is the less it's gonna take a hit. The best way to determine if your upgrades are worthwhile (investment vs. return) are to ask an appraiser (or even a friendly local realtor) where the value will go if you do your add on's. Adding square footage for instance will cause you to be comped against bigger houses in the area which of course can mean a higher selling price. Same story for the garage, etc. The trick is, of course what you will look like on paper after your done and if there are other homes like it within the area - and what they sold for of course. Your add's look like a great way to go, from even just a livabilty standpoint so you're safe there.

Make sure you always get permits for everything you do - otherwise the add-on's are considered damage and cost of returning the property to it's stock condition will be subtracted from your value. You can also get in trouble if your add on's are so unique or your the only one for more than two miles with a property(you'd have to be really damn radical to be strangled by this problem) like yours that the appraiser can't comp it cleanly - no comps = no value a lot of times. Not an issue until you try to sell the place. The banks give borrowers a hell of a hard time if the comps aren't clean. No bank approval = no buyers.

Good luck.

rjp

[tabs]

I can't imagine a new development in your neck of the woods to be cheap....and better than the prevailing area....

My friend who is a retired Electrical Contractor say New always sells...and New sells for more money than old...also a rising tide rises all boats...

I would find out what the proposed new community is going to be like, and check your older neigborhood out to see if others in the area have done improvements like you are comtemplating...

[RoninLB]

I believe a developer is going nuts trying to buy a couple of lots I own. The neighborhood is $1mill + with golf courses on every corner if you don't walk out your back yard onto one. It's undeveloped and I'm holding out.. I'm waiting for the big neighbors to move in and then I'll have a porta potty installed. I'll post free camping at the local college cafeteria, clothing optional.