House shopping is a big job with lots of moving parts. Buyers usually realize that they must consider more than the house alone... The immediate neighbors, the neighborhood, and the schools can bear a significant impact on the property value.
Photo Credit: Vincent Disanza
Our friend, Vinny Disanza, is both a licensed agent and Certified Residential Appraiser in California. He frequently shares interesting and unusual tidbits from situations he encounters in his daily field work. We've learned a lot from Vinny through the years, and this recent question really grabbed follower attention.
Can street name negatively affect market value?
The short answer is yes. Vinny explains that appraisers will adjust for street name if there is evidence that street name affects property value, stating, "The big term is external obsolescence."
External obsolescence is a factor that reduces the value of an improvement because of something external to the property itself. It's not about whether the house is outdated or not, but rather something outside of the home that is causing a lower value. It's usually something that cannot be cured. --
Other examples of external obsolescence include busy roads, high voltage power lines, commercial buildings, landfills, zoning changes, etc...
How is the impact of an undesirable street name measured?
By researching sold comparables and historic resale value for homes on a particular street compared to similar homes on other streets in the same subdivision or area, and appraiser can ascertain evidence of external obsolescence relating to street name.
A savvy Realtor® will take factors like this into consideration when helping a seller price a home. Curious about your Texas home value? Use our free online tool to request a complimentary analysis today!
Different isn't necessarily bad...
Having a unique or unconventional street name is not necessarily a bad thing. Names that stand out can attract interest and contribute to positive branding as well. (Think "Rodeo Drive, Wall Street, Madison Avenue...)
Here are a few notable Texas street signs that have garnered our attention over the years. Share one of your most interesting photos back with us in the comments below! :-)