Do custom homes increase the surrounding areas property values? This is a question that many people are very curious about. For good reason to, shopping for a new home is probably the largest investment you will be making in the next few years. Worrying about the implications of custom homes on local properties will probably be the main concern on your mind. Rest assured though, your future seems quite bright.
Generally speaking, people are usually more worried about the area around them lowering their home values rather than the other way around. It is good to take into consideration the objects around your future home when shopping though because certain conditions can be a sure fire way to destroy your property value.
They say location, location, location when it comes to buying homes because this will ultimately dictate if the home will fetch a premium, or be at the bottom of the barrel. It is a well known fact that things like power plants, train tracks, landfills and pretty much anything that can become an eye soar can and will lower your home value. It is wise to investigate everything around the area when shopping because there is always many unknowns that can come up. For instance, is there a mine under your home, is the soil unstable, or is the area deteriorating? This brings us to the real question though. Will custom homes positively or negatively affect property values within the confines of a big city.
This can go both ways, the higher quality of the newer homes can have a snowball effect on the area and slowly increase the value of everything around it because then the area appears to be more affluent. This single change can have an enormous effect on property values because it convinces people that you do not have to live in a suburb to get the same safe family home that you want. Thus increasing values and causing the area to do better because it is supplementing the economy in its own way. More expensive homes means higher taxes on them so it really is a win win situation.
The boost to the city’s budget will not go unnoticed and could potentially cause the taxes to lower for the other residents of the city. However, the opposite can also happen. On the flip side, the newer homes can lower the surrounding property values because the demand for the newer housing will be greater. In turn, the older homes will have to price their properties at a lower cost to stay competitive in today’s demanding real estate market.
You would think the former is more likely to happen because it just makes more sense. This could not be farther from the case. The scenario changes for each individual application and predicting the valuation curve can be an uphill battle. The best gauge on how the values of where you are looking will be effected is to identify the surrounding areas and based off of their history you can get closer to a well informed decision on your area. The answer is not always clear, but there are ways to mitigate the risk.