While real estate investment might be challenging at times, several facts are present in practically every transaction. As an expert realtor, I can tell you that location is one of the most significant variables to consider when determining a home’s worth. There are several internal and external factors to consider while choosing a place. Although some of these factors are simple to identify, others are more difficult to notice.
A busy street may not strike a bell or appear to be critical for newcomers looking to buy real estate properties. However, this factor impacts a home’s resale value. But what is considered a busy street? and how much does a busy street affect resale value? Let’s get into the details, shall we?
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What Is Considered a Busy Road?
A busy road can be a market street, a commercial highway, or an avenue bustling with activity. One common determinant of a busy road is the number of happenings on the said road. Busy streets have tons of people going about several activities, cars moving past at varying speeds, and then there’s the noise from these activities.
Furthermore, a busy street has an impact on a home’s market value. Now, I’m not implying that a house on a street bustling with activity can’t be sold; you have to put it in order and highlight the positive aspects of the deal for potential purchasers.
When deciding on a house to buy, certain individuals are thorough to ensure the apartment is comfortable for them. Hence questions like how many cars per minute is a busy road like that likely to have may arise. Other vital questions include what amount of noise is generated by the vehicles? Living near a busy road, how annoying is it? Sellers should be aware of these considerations.
Busy Streets and Resale Value
I’ve bought several houses, intending to make a profit, and one important question I always have on my mind before purchasing one is “how much does a busy street affect the resale value of the house?”
The reality is that no matter how lovely the home is, its location will have a critical impact on its appeal and price. One of the most important site elements I always consider is a busy thoroughfare. Also, I always accept the risk of having to sell for a reduced price. At the same time, I’m careful while making decisions.
But how strong is the link between a busy street and a house’s selling value? I’ll say it’s a rather strong relationship. After several years of experience, I’ve come to discover that many residences on busy streets are often valued at ten to 20 percent less than they would be on noise-free streets. It’s often difficult to obtain potential buyers who are interested in such homes, thus impacting my earnings when flipping the house.
How Does a Busy Street Affect a Home’s Resale Value?
Recently, I bought a house on a busy street. After a few repairs and minor renovations, I listed the house for $280,500, which it should sell for based on previous sales of similar properties. To my surprise, I didn’t receive any offers within the first two weeks of listing. My team and I started wondering what was wrong with the house. We eventually did get the house on contract, but not before waiting for almost a month.
The house, facing a road, had its value affected by the location, and it took longer than usual to find a buyer. If we were in a more competitive market with even more properties for sale, the value of the building may have dropped much further.
Living on a busy street might be a concern even for typical homeowners in certain economic scenarios. The prices of homes on busy streets tend to fall even lower when there are so many for-sale properties on the market. Regular homeowners with a significantly low property value may find themselves underwater on their mortgage. As a result, some homeowners may be forced to foreclose.
How profitable is purchasing a house on a busy street? Honestly, it depends on the buyer. How much noise can they cope with? Do they want a place where activities are on a high?
Does Road Noise Affect House Prices?
When you think about a busy street, you picture a thoroughfare with vehicles driving back and forth, and people going about engaging in several activities. So, road noise is a dominant feature of a busy place. A street bustling with activity will be noisy, making it uncomfortable for certain dwellers. It’s necessary to know how to tell how busy a street is, as sometimes, potential buyers may ask before coming to inspect themselves.
Every person has their own preferences. Regardless of the amount of activity, some individuals thrive in busy areas. Then, several other individuals prefer a calm and noise-free environment. These people are the types that may eventually regret buying a house on a busy street.
Take it from me that road noise affects the prices of houses in the real estate market. I’ve seen several potential clients back out of deals after visiting the building and finding out that the street is busier than they expected. But of course, you’ll eventually find a buyer, albeit at a longer time than you’d expect.
Other Factors That Can Influence the Resale Value of Houses on Busy Streets
Besides the noise factor, certain other aspects also affect the value of homes on a busy street, including:
The Neighborhood
From my experience, the neighborhood will also impact the resale value of a property located on a busy street. While the value may not be the same as that of houses in a less noisy community area, it’ll almost certainly rise at the same rate as the others.
The Type and Condition of the House
As I mentioned earlier, a typical house’s value can be lowered by up to 20 percent when located on a busy street; however, this is not the case with condo homes. Condominium resale values may rise if they’re close to a major street.
Real Estate Market Conditions
The value of a property on a busy street may increase or decrease depending on the real estate listing and sale period. Buyers will be willing to ignore the traffic and accept offers if there are only a few more listings.
Selling Time
The amount of time taken to find a buyer for a listed house can also influence how much it sells. A longer selling period will be inconvenient to a seller and will lower the value since buyers will always expect a discount for a home that has remained on the real estate market without being sold.
How to Sell a House on a Busy Street?
Need to sell a house on a busy street? Here are a few tips I recommend you take seriously before listing your home. I sold my house in San Diego pretty fast by implementing some of these strategies.
Hire a Real Estate Agent Who Knows How to Sell Your Home
The first thing I do is to hire an experienced real estate agent to help market my property. Due to its location, it might be difficult to sell a house too close to a road bustling with activity. Therefore, an effective customer-grabbing sales strategy will come in handy.
Have Realistic Expectations
Common mistake home sellers make is assuming they can sell similar houses for the same price without considering the differences in location. This mistake leads to unrealistic expectations.
So, before listing my home, I consider the location factor first before attaching a price tag to the building.
Put Some Work in the Landscaping
Prospective buyers inspecting the house will notice the bustling street. Therefore, I apply several tweaks to improve the appearance of the property by working on the exterior, particularly the landscaping. The aim is to achieve an eye-catching look sufficient enough to satisfy home buyers interested in my property.
Consider Selling as a Commercial Space
Another option to help market a property on a busy street is selling it as a commercial space instead of a residential one. Commercial activities thrive in busy areas. So, a building in such a street will attract buyers.
Build a Fence
Erecting a fence is another strategy I use to sell my houses on busy streets. The aim here is to limit the amount of noise entering the compound. I noticed home buyers appreciate these apartments more when there’s a barrier between the house and incoming noises from the bustling street. Don’t be afraid to spend a little money on such a rewarding cause of action.
Install Noise-Reducing Windows
If you’re still insistent on selling the house as a residential apartment, consider installing noise-reducing windows. By using this simple tip, I’ve made several sales on houses located in busy areas. Numerous buyers frown at the concept of buying a house with road noise seeping inside their homes. So, I use these soundproof windows to limit the quantity of sound entering their apartments.
Don’t Spend More Than You Can Make Back on the Sale
Whenever I’m making these changes to a house that I’m looking to sell, I’m always careful not to overspend an amount that I won’t gain even after selling the property. While I want to attract buyers with the renovations, I also don’t want to lose money in the process.
Therefore, I always consult my team of professional agents on the best steps to take to make the house more desirable to clients while also avoiding overspending. Like me, you should accept that sometimes it’s best to sell your property unaltered and at the right price.
A local real estate professional’s advice might be the difference between spending little on the building and selling it for a decent price or splurging and selling it for a loss.
Conclusion
How much does a busy street affect resale value? During my early days as a realtor, this question crossed my mind, and I bet every new real estate investor is struggling to find an answer. Whenever I’m looking to sell a house on a busy road, I always put myself in the position of a buyer, so I can determine how the location of the home can affect its sale.
Several homebuyers prefer living in quiet environments to bustling ones. So, these individuals want to avoid buying a house on a busy street. However, there are several steps you can take to make your house appealing enough for buyers to latch onto the opportunity of owning the apartment regardless of how busy the street is.