18 Apr Located on a Busy Road?
What impact do busy roads have on properties?
The honest answer is I’ve seen varying impacts on value.
Sometimes the reaction is significant while other times it is minimal.
Why? The reasons can vary such as how loud the traffic noise is? Can you hear the noise inside the home? Is the home located on the street or does it back to the road? Is the property located on a big lot with the dwelling setback away from the road? What kind of noise barrier wall buffers the street? What are the current market conditions- are there a shortage of homes in the neighborhood so demand is higher for available inventory? It’s important to find a property with similar influence to confirm the possible reaction.
Two quick examples: I completed a historic private appraisal where the property was located on Sunrise Blvd. This location had a significant impact on market value as was a corner lot with significant noise/road influence. However, I did not want to guess the percentage. I had to use older sales to show the location influence. I am sure most of you have drove on Sunrise Blvd and understand how busy this road is.
Another recent appraisal I completed, the property backed to a moderately busy access road. The property had a high cinder block wall and the noise factor was minimal. My research showed that properties in the neighborhood did not have much difference between interior locations vs. backing to the road.
My advice is not make an immediate assumption and look at the data for the neighborhood to confirm what the impact may be. Sometimes go back in time researching older sales and see what the reaction was. I’ll call/text agents and discuss the property which can be insightful information. I always appreciate my conversations with agents talking shop!
Bryan Lynch
Advantage Appraisals : Lender and Private Assignments
NAA Designation and REAA Member
Office: 530-878-1688
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