Property values

[huey graphite]

I posted this question on a real estate message board but the traffic pales in comparison to this site and I value the opinions of the members of this board so thought I's post it here as well.

 

 

I live in a community that is roughly 400 new homes in an area that was previously farm land but a few older homes as well. Numerous subdivisions are being built within this area.

 

I am curious to know how this affects the property values of these older homes. Often i see these older homes up for sale as these communities begin to develop. Is it a case of the owners not wanting to live in the middle of a construction zone or are they cashing in on the increasing property values or are their property values declining because their older and often smaller homes are an eyesore amongst the new neighbouring homes?

 

Your thoughts?

 

HG

[Jen]

Being a realtor in the Greater Hamilton Area I pay close attention to the market and trends. It would be very difficult to comment on your question not knowing the area, value of homes, future planning etc. Your best bet to get an accurate idea of what is happening with the value of your home is to call up a local agent and have them do a Current Market Analysis on your property/home. They are usually free but keep in mind do entail a great deal of research and work... so if you eventually list it is always a good idea to look at the agent that was willing to do the analysis for you.

 

Cheers,

 

Jen

[lew]

A longtime and very dear friend of mine owned a 200 acre dairy farm up on the hill near Binbrook (SP) He retired several years ago and was offererd an insane amount of money for the property. He kept a 1 acre piece of ground near the road, built a new home on it and sold everything else off to the developers.

 

What was once a beautiful farm and plenty of trees and open space is now homes, stores and traffic congestion, but I spose that's progress.

 

He's dead now, but his family is living well from the sale.

[huntervasili]

One of my friends owns a decent amount of acreage near where I live... On each side east, and west there are two new developments only a few farms away... in his lifetime he will reap the benefits of the increase in value but... His neighbor, at the foot of his property, has approx a 3/4 acre lot and a nice house which he has put sweat and blood into building himself... The point is his neighbor ain't gonna make a cent... as soon as the land around his is developed he will be forced to sell because property taxes will go way up and wont be worth it to him... the developers want the land but a less than one acre lot isnt going to do that much for em and they sure as hell aint gonna keep his house there... the bottom line is he is SOL... his property may be bough a little abouve the value of the acreage but the house will be broken to the ground... Its an unfortunate situation which he is well aware of but is not looking forward to... In my opinion I wouldnt touch a parcel of land such as his now knowing what is going to happen.

[JohnF]

The answer probably lies in the area's demography.

 

I won't bore everyone with my windy explanation but I sent a pm. Hope it helps.

 

JF

[Kirk]

I've seen real jalopy houses being worth a mint in the right place for the right builder.

 

So to make this a fishing related thread, property market value, like fishing, are based on 3 things, location location and location.

[holdfast]

All I know is that around here there is an incredible housing boom in North Battleford. Expensive new houses are being built along the dumps but guess what. These dumps are getting shingles, siding, new windows and now they are 400 percent more in value despite the problems of the city infrastructure. IE sewage and storm drains that are archaic . People are flipping 20,000 dollar dumps to 120,000 and rising. And now, your typical rental trash are now moving to the dark side of town. Property taxes are also hitting the roof. Sad but true.

[huey graphite]

Thank you for all the responses (and the PM JohnF).

 

I've seen this happen in numerous communities in Southern Ontario. Builders break ground and many of the existing homes have for sale signs soon afterward.

 

Not looking for reasons for specific neighbourhoods. More or less a general observation and I'm sure there could be multiple reasons.

 

Thanks again.

 

HG

[OhioFisherman]

Not in your area, and just a general observation based on my location. My land value went from 12,500 to roughly 40,000 since 1989, add the house and it`s a lot more. My county has been one of the fastest growing for a number of years, a lot of reasons for it.

 

Crime in the big cities, school system, the general atmosphere of smaller town life. Like Kirk mentioned,location,location, it seems to generate more interest, higher values.

 

We do have much fewer developments in my immediate area of the county, a 3 acre minimum lot size slows overbuilding. Yes some older homes have been bought just to be torn down and new ones built, but most had larger lots. Or they were purchased for access, at some pretty high prices I thought. Again the location thing.

[Loonietoon]

Lew.. His name would'nt have been Swayze was it????