The effect of increasing traffic and widening of a street and the impact on PRICE 

This is just an example of why buyers want to be careful when buying a home that backs to a busy street.  The home pictured above with the "red dot" was a model home purchased on 3-23-2005 for $269,900.   At the time of construction in 2001 this street was a simple two lane road.  A few years later the street was widened and there was a significant increase inthe amount of traffic.

How did this affect the price?  Many factors play a part in price and the increase in traffic is only ONE of the factors. 

• On 6-26-06 the sellers listed the home for $275,000 after 183 days the listing EXPIRED.
• On 12-20-06 the sellers changed agents and increased the price to $279,000 after 146 days the listing EXPIRED.
• On 5-27-2007 the sellers changed agents and lowered the price to $270,000 and then lowered the price to $255,000 after 124 days the listing EXPIRED.
• On 10-22-2007 the sellers re-listed with the same agent.  The home stayed on the market for an additional 93 and then EXPIRED.
• On 2-6-2008 the BANK listed the property for $250,000 with a different agent.  The price was subsequently lowered to $199,000 after 121 days the listing EXPIRED.
• On 6-11-2008 the BANK listed the property with a different agent and lowered to price to $159,000.  After 7 days the home went PENDING with an accepted contract.

For the record this was NOT one of my listings.  I interviewed with this seller after the listing expired the first time in 2006.  At that time, I told him he was too aggressive on price and that the price needed to be lower.  He disagreed and hired someone else.

The moral of the story is that eventually ANY home will sell at the right price.  Many factors play a role in pricing and even a very nice homes in wonderful neighborhoods can lose value.  What you pay for a home or what you need in terms of money has NOTHING to do with current market value.  

Thanks,

David Matney, CRS,GRI

Alliance Real Estate