question on house values

[cranberry]

Hi everyone. I apologize in advance for being such a broken record about my house.

Behind my side of the street, we have woods. The property is owned by a developer who wants to build houses there. I have only heard about his plan second-hand, but it sounds like he wants to develop the 125-foot strip directly behind our houses (it is the only part of the property zoned for residential use). He'd have to put a road in, though, so I'm not sure how that would work. I think it would have to loop into our road.

I only know this from a message from a very high-strung, busybody neighbor who wants to know who we need to call to fight this. I'm thinking that if he's legally developing his land, there's nothing we can do to fight this. I don't want another house behind my house either, but I'd prefer that to, say, a gas station or a porn shop.

I emailed the developer to find out more about his plans - I'd rather get it straight from the horse's mouth rather than from my high strung neighobr. But we haven't yet connected.

As many of you know, I've been hemming and hawing about selling my house. I had decided to wait, as I think it will still take me awhile to clear out and get ready. I was thinking that the earliest I would sell would be the spring of next year.

But I'm wondering whether having property developed behind me will make it harder to sell my house or lower the value substantially. Any thoughts? Should I just bite the bullet, push to get ready, and sell now?

Thanks! Sorry to be so bothersome with all this!

[Deleted]

A whole lot depends on what the developer is going to do. If you end up with one of the cheapest houses in an expensive neighborhood, you could be in great shape although you'll have to put up with construction noises and dust for awhile. If he builds McMansions that are too big for the property and that block your view of anything scenic, it could be bad.

[phil5185]

you could be in great shape although you'll have to put up with construction noises and dust for awhile. If he builds McMansions that are too big for the property and that block your view of anything scenic, it could be bad.

But whatever the plan is - it is already 'baked in the cake'. If you list your house today, the Plans (finalized or not) must be disclosed to potential buyers. So the effect on your property valuation is already done. (Hope it's good -

[cranberry]

Thanks, Athena and Phil.

Phil - that had crossed my mind, too.

Athena - he has talked about putting in McMansions that would cost double of what the average house on our stree is worth. But I'm not sure on that - this is not a McMansion kind of neighborhood and I think the land he's working with wouldn't support houses that big anyway.

[alabamagal]

If it zoned for residential development, then he can legally develop it. If he is trying to change the zoning, it will have to go before some type of zoning board. This happened where I live, they wanted to change from zoning for single family homes to duplexed. Everyone got together, signatures, attending zoning board, etc. it went through anyway.

If it is for houses better than yours, it can be a good thing. Hope it works out.

[Deleted]

Jun 12, 2011 17:54:18 GMT -5 cranberry said:

Athena - he has talked about putting in McMansions that would cost double of what the average house on our stree is worth. But I'm not sure on that - this is not a McMansion kind of neighborhood and I think the land he's working with wouldn't support houses that big anyway.

Builders do stupid things. I once looked at a neighborhood of semi-expensive houses that you reached by going through a neighborhood of clearly less-expensive houses. (This was northern NJ, where even "less-expensive" houses in good school districts are prohibitive.) It was a turnoff. I could picture the out-of-place McMansions being a bigger drawback to the prospective buyers of those places than to prespective buyers of yours.

[cranberry]

I have a feeling the houses will be nicer than what's on my street.

He tried to change the zoning 2 years ago. The land is zoned partially for industrial use and partially for residential. He wanted to change to all residential. My street fought it and we won - it was unanimously voted down by the city council. But it looks like this time, he's not going for the zone change.

[DVM gone riding]

why would you fight that?? I would much rather have houses behind me then a strip mall? I think most people accept that houses get built in green areas but until the permits are approved you don't know what he will do! I live in an on-going development plans have changed a lot in four years and two builders bankruptcies but either way eventually there will be more houses around me.

[Deleted]

If he is building houses, the only thing you should probably worry about is stuff like drainage or other natural impacts on your property. You can't control what a developer does on land that is zoned for real estate development. Your buyers will see the developing. Or their saavy real estate agent will know about it (buyer's agent).

Best advice my real estate agent gave me when I bought my first house? There were two properties that I was interested in. One was a brand-new, gorgeous townhouse with an undeveloped strip in front of it. The other was a five-year-old single family home a block or two away (actually a subdivision next to the townhouse development). She said they might build something nice; they might not. You know already what's in front of you in the SFH.

She was right. They put basically a strip mall in front. The SFH's are selling better (although not well).

[cranberry]

Many thanks!

We fought the zone change because we could. We liked having the woods behind us.

However, in this case, I know this guy has a legal right to develop his property. I respect that. I'm just trying to figure out what the implications are for me.

I think I'll start talking to some realtors and get their input. Just to keep myself informed.

[Regis]

If it's residential, the developer will still need approval from the plat committee and there will be a hearing where any affected parties can voice their opinion, either for or against. As a professional engineer and land surveyor, I've represented a lot of developers at these hearings. If there's a concerted effort among the neighbors, the plat could be denied (although not likely if it meets standards) or could be approved on condition (i.e. tree preservation strip, noise wall, etc.).

[Deleted]

Jun 12, 2011 17:48:45 GMT -5 phil5185 said:

But whatever the plan is - it is already 'baked in the cake'. If you list your house today, the Plans (finalized or not) must be disclosed to potential buyers. So the effect on your property valuation is already done. (Hope it's good -

I plan to build a shed in my back yard someday. Might be 10 years from now. It could slightly obscure my neighbors view of the hills. Does that need to be disclosed by my neighbor if they know about it and put their house up for sale in a year?

There has to be a line in disclosure between some idea scribbled on a post-it note and an actual plan that at least has been submitted to the city/county.

[2kids10horses]

If you have told your neighbor that you are planning to build the shed, and by doing so you would ruin the view, and if the view is an attractive feature of the property, then, yes, they do have to disclose the fact that you are planning to build a shed.

Especially if the view is one of the primary features that creates value for the property. If the current owners know, and sell the house for a value based upon an exceptional view, and they KNOW that you are about to destroy that view, and therefore ruin the value of the property, not telling a potential purchaser is fraud.

[cranberry]

Snerdley, I've been considering selling my house for awhile now, for a variety or reasons. This isn't a reaction to the development rumors...I'm just wondering how development might affect selling. And I'm learning that there really isn't an answer to that question.

However, discussing it here is helping me see how to deal with this high-strung, busybody neighbor.

I'm going to at least talk to a realtor and learn more about my options.

[tskeeter]

cranberry, if you don't get any feedback from the developer, contact the local building department and ask what is going on. They should be in the know, or be able to refer you to people who are in the know. Regardless of the zoning, you can fight the development, if you choose. Usually this is done by attending public hearings or meetings of the city/county agency that handles building and development. These groups are usually pretty receptive to hearing citizen concerns.

In one place I lived, a developer wanted to construct a development on a parcel zoned for single family homes that was completely surrounded by land owned by other people. The home size the developer was proposing was much smaller than the adjacent neighborhood and there were to be about three times as many homes per acre as other developments in the area. In addition, the parcel was not bordered by a road, so the only access to the site for construction vehicles and the eventual residents was through the adjacent neighborhood. Several homeowners attended the meeting where the developer was making his request for approval of his plans. The homeowners expressed concern about how the limited access and high volume of traffic would affect their home values and their lives. Ultimately, the developer's proposal was turned down due to the limited access and the home density that he was proposing (the official response was denial because access for emergency vehicles through the only road in could easily be obstructed in the event of a tornado, or something similar).

I've had a few experiences with these types of governmental agencies, and I believe they try to act in the interest of homeowners and of the community as a whole. It's worth a try. At the very least, you'll get a bit of education in the workings of your city or county. That's usually a good thing!

[Deleted]

Jun 13, 2011 1:19:14 GMT -5 2kids10horses said:

If you have told your neighbor that you are planning to build the shed, and by doing so you would ruin the view, and if the view is an attractive feature of the property, then, yes, they do have to disclose the fact that you are planning to build a shed.

Especially if the view is one of the primary features that creates value for the property. If the current owners know, and sell the house for a value based upon an exceptional view, and they KNOW that you are about to destroy that view, and therefore ruin the value of the property, not telling a potential purchaser is fraud.

I'd still love to see the law that requires this. There has to be a line between might do something and will do something. Might build something and will build something. Plans fall through all the time. If someone hasn't taken even the most basic steps to move forward with an idea, it is not yet a plan.

[2kids10horses]

It's not a "law", but if you sell your property, you are required (if you use a REALTOR) to disclose any latent or hidden defects. The general rule is if it is in plain sight, you don't need to disclose it. So, for instance, if the basement wall has a crack in it, that right there in the open, and you can see it when you look at the wall, you don't need to disclose.

However, if there is a crack, and the homeowner puts up a sheetrock wall to hide the ugly crack, and doesn't disclose that the basement wall is cracked, then that constitutes a failure to disclose a fault, and they could be liable for misrepresentation.

Likewise, in this case, let's say there's a "million dollar view", but the homeowner knows that the neighbor is about to build something that will destroy the view, and fails to disclose that the neighbor is about to build, then again, it's misrepresentation.

Sure, plans change. A wise seller would tell a buyer that the neighbor might be building something, and he should check on it.

[CCL]

How much land is the guy planning to develop? You can't build too many houses on 125 ft of land. Is that just where an entrance road would go through? Maybe you wouldn't even see the new houses due to the woods?

[Deleted]

Alabama is a "buyers beware" state so check your state laws about disclosure.

[Deleted]

Jun 13, 2011 15:48:49 GMT -5 CCL said:

"It's not a "law", but if you sell your property, you are required (if you use a REALTOR) to disclose any latent or hidden defects."

It's a law here and it doesn't have anything to do with being a Realtor. It applies to everyone.

But what *IS* the law. Disclosure is just a word.. What specifically needs to be disclosed.