What’s that gonna do to my property value?

It’s a questions I get asked often, so I thought I would share some examples about what affects property value and what doesn’t….most of these have been asked by friends and clients, for which I am thankful they deemed me to be enough of an expert to ask!

“The golf course behind my house went bankrupt and I’m worried about it getting developed”

I got this one a lot since I lived in such a neighborhood where this happened. People that lived on the course were worried that their values would drop if there wasn’t a golf course behind them. If the land got developed to be single family homes that were priced about the same as the rest of the neighborhood, it would not impact value. Sure, if it was your house you would know the view you used to have, but to the person buying your house, all they know is that there are houses behind your house just like most of the rest of the neighborhood. (BTW, when this happened in my former neighborhood, there was no value difference for the lot. Houses of similar size and similar condition were selling for the same regardless of whether the house sat on the course or backed to other houses in the neighborhood.)

“The city is taking part of my lot for storm sewer runoff.”

This friend of mine lives in a historic neighborhood where all the houses on his street have large, deep lots. He showed me where the city was going to install underground drains and described what it would look like. It wasn’t going to be ugly. Fortunately his lot was big enough that his backyard was still huge by today’s standards. I said it wouldn’t impact value at all since there was still plenty enough backyard for future buyers to have room for kids to play, a pool, etc. It was functionally the same before and after.

“My neighborhood got redistricted to another school”

This one happens a lot. If the school you are losing performs equal to the new one you are getting, then it won’t impact value. If you are going from one of the highest performing schools to a lower performing school, well, that isn’t so good. If you are going from a poorly performing school to a better one, your values could go up!

“They are going to build apartments in my neighborhood.”

This seems to be happening a lot. Density in Lexington is only going to get worse as we attempt to fill every square foot inside the urban service area before entertaining the idea of expanding it. People in Lexington are used to this. While the increase in traffic in your neighborhood will be annoying compared to what it used to be, future buyers won’t know how good you used to have it. Plus, people in Lexington are used to traffic. Unless your house backs up directly to the new apartments or you are on the road that everybody living in the apartments will use, it won’t impact value.

I think when it is YOUR house, it is easy to think any change will be negative. You will remember backing to the golf course, when you used to have a bigger backyard, the school your kids went to and what that vacant field looked like before it became apartments. The thing to remember is that when you go to sell your house, the buyer has no idea how things were. They only know how things are now. A prime example of this in my own house is noise. When I moved here, there was a lot of undeveloped land around me. It was very quiet. With all the new development around me came things like hearing fire trucks or ambulances, dogs barking in the distance, the sound of kids playing. I miss the peace and quiet but you know what? All the changes are things most people see as being normal in any neighborhood, so it doesn’t hurt my value one bit.

Neighborhoods that benefited the most from school district changes

I get a lot of questions about school districts and property values.  Most of the time there is nothing to worry about unless your neighborhood goes from having average/above average schools to getting ones that are worse.    A lateral move doesn’t really matter.  The best situation is when you have poorer performing schools and get better ones….which is the topic of today’s blog post.

Here are the top 3 winners in my opinion.  The biggest changes in the district boundaries were in the Hamburg/40509 area, so these are all out that way:

3.  The Home Place/Gleneagles.  The cat got out of the bag early on this one.  The school district bought land in this area and everybody knew that these 2 neighborhoods would go to the new school.  Suddenly it became a more desirable place to buy and prices went up.

2.  Greenbrier.  Several years ago I would get the same feedback from my buyers after showing houses in this neighborhood.  They would say “I love the neighborhood and all the space out here, but I don’t have $100k to renovate this house AND pay for private school.”  So, they wouldn’t buy it.  Now that “The Brier” is getting the new elementary and new high school, houses are selling and being renovated.

1.  Chilesburg.  Use to be only the first phase of that neighborhood went to Athens-Chilesburg Elementary (A.C.E.).  It never really made any sense since the school was right in the middle of the neighborhood.  The neighborhood got the school and prices have really gone up.  Use to be if you were in the mid $200k range and wanted that school, Andover Hills was your only option.  There use to be a big gap between similar sized houses in these two neighborhoods.  Not any more.  Chilesburg can pull the same money per sqaure foot as Andover Hills can now.  A 2500 square foot 4 bedroom house in Chilesburg use to be about $190-225k several years ago.  Practically the same floor plan in Andover Hills was getting $225-245k.  Now both are in the $245-255k range.