How much do location issues impact the ultimate sales price of a home?

Location issues and impact on home valuesSavvy Silicon Valley home buyers tend to look at properties with an eye toward what they can change versus what they cannot change.  It’s a pain, but not really so hard, to make cosmetic fixes or upgrade a house or condo.  It’s more work, but still possible in most cases, to move walls around.  With some houses, an expansion may be an option.

But the one thing that cannot be changed is location issues. Things too nearby like high voltage power lines, train tracks, freeways, schools, busy roads, commercial properties, less expensive properties or types of residences (such as apartment buildings) will pull the property value down.  Similarly, being on a T intersection, having neighbors with run down houses will also impact pricing because again, the home seller cannot control or mitigate their impact. The question is how much of a home pricing impact will it be?

From a slightly busier than normal street to a quieter one, it could be as little as 3-5%.  Being directly on a main road, it could be 10% or more.  Pile up several unfixable issues and it will possibly be more, perhaps 15%, or higher. In general, 10% is a good working number to use but it could be too high or too low based on your particular situation. (more…)