Do McMansions Impact Local Housing Prices?

By
Real Estate Agent with Hollish Hill Group, KW Capital Properties

Are homes being torn down in your neighborhood and replaced by massive houses? As land becomes more scarce, builders are seeking neighborhoods with large lots to accommodate massive new homes and buyers are paying top dollar for them.

Have you wondered how these new homes impact the value of the older homes in the neighborhood? Does it make sense to upgrade your current home or will it be torn down when you decide to sell? The "renovate or move" question is one we've been helping homeowners answer for years, but the impact of tear downs and rebuilds adds another variable to neighborhood prices. We wondered if there was a way to calculate and predict a tipping point. A point when it no longer makes sense to upgrade because it will be sold to a builder.

One local agent told us she's telling sellers their properties are worth less than an empty lot because the builder/flipper has the added expense of demolishing their home. It is painful for sellers to hear.

We've noticed the first massive homes replacing older ones will sit a bit longer on the McMAnsionmarket, likely because of appraisal limits for non-cash buyers or the tendency of buyers to forgo buying the most expensive home in a neighborhood for the least expensive home in a "better" more expensive neighborhood. But if your neighborhood is transitioning and you own one of the older, well maintained homes, when do you stop thinking about upgrades, or even maintenance? There isn't an easy answer - it involves some calculating for each neighborhood. If you'd like help with that calculation in your neighborhood, contact Dana Hollish Hill at 202-271-5301.

 

This article was originally posted at https://hollishhillgroup.com/real-estate-blog/do-mcmansions-impact-local-home-prices/

Posted by

__________________________________________________________________________________________

          Dana Hollish HillDana Hollish Hill

          Principal, Hollish Hill Group, LLC

          Lead Associate Broker, KW Capital Properties - UNW DC

          4646 40th Street NW, First Floor, Washington DC 20016

          202.847.4466  cell  202.271.5301  web hollish.com

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Tags:
tear downs
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Rainmaker
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Dana - this is an issue that is facing many communities across the country.  That has been true in many areas of Los Angeles.  I personally don't think there necessarily needs to be more legislation but a truly common sense approach(oops my mind starts to wander...) show that certain grass roots efforts need to take place in neighborhoods.  Yikes...I have lived in an HOA type environment for far too long perhaps and I know that draws conclusions of all kinds.  

Aug 12, 2019 05:22 PM #1
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Rainmaker
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Dana Hollish Hill

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