Can Street Name Affect Market Value?

By
Real Estate Broker/Owner with Providence Group Realty TREC# 0608931

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 It's not about whether the house is outdated or not, but rather something outside of the home that is causing a lower value.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! :-)

 

Comments (5)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I saw a similar post a bit ago...I think if buyers love the home for the most part the name doesn't really matter

Jan 21, 2016 11:15 PM
Amanda Thomas

Kristin Johnston, Waukesha Realtor 414-254-6647  - thank you so much for your comment. A Buyer who purchases in full disclosure and awareness is a happy Buyer.  Buyer's remose and learning of such a condition the hard way can be a nightmare.

Jan 21, 2016 11:36 PM
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Amanda Thomas . . . . . . .  no doubt about it a sign can impact market value!

 

Jan 21, 2016 11:28 PM
Amanda Thomas

Bruce Walter -- great example of two diametrically opposed destinations. :-)

Jan 21, 2016 11:30 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

I once showed a house in Bethesda, MD to a buyer who freaked out over the street name.  It sounded pretty innocent to me, but I later learned it also was used slangily to refer to something that, well, you wouldn't want people to think about when they looked at your address. 

Jan 22, 2016 01:05 AM
Amanda Thomas

VERY worthy point, Patricia Kennedy! Language matters! Know before you buy. :-) 

Jan 22, 2016 01:08 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Patricia for sure a street name can make a difference - and it can go both ways! We have a new listing on a very popular street in a subdivision and it is getting shown a lot today. One block over not sure it would be that hot.

Jan 22, 2016 02:11 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Even the name of a town can be a negative. Good points to consider - and resale may come into play down the road. 

Feb 01, 2016 04:04 AM