You need to sell your house fast while your neighborhood is expanding rapidly, or there is a significant apartment block coming up.
This has you competing with multiple other listings, from completed units in the new development to your former neighbors’ vacant houses because they left to avoid the anticipated congestion.
Every potential cash home buyer you speak to seems to think your house is overpriced because they compare it with the prices listed on the developers’ property.
They are lowering your house’s market value and are approaching the point where you might not make your mortgage payment. You need to sell your house fast for cash, but the new development is standing in your way.
Thankfully, you are not the first homeowner to be in this unfortunate position. It happens a lot when a house sits next to vacant land that the government can allocate to urban development or raw land that a property developer owns.
We have compiled a few strategies you can apply when it seems you can’t sell your house for cash because of a new nearby development.
We need to establish the connection between the new development and your home listing to lay the foundation for our solutions.
The true effect on the value of the property depends on the nature of the development compared to what already exists.
Property values will drop if the project is for low-income earners and the neighborhood is for the affluent. If the reverse is applicable, the property will gain value after construction.
There have also been reported cases of vibration damage caused by heavy-duty work close to the property. The state of disrepair lowers the property value significantly. Structural damage must be documented to successfully file a claim with your insurance.
The damage comes in the form of cracks on your concrete court, floor slabs, at the corners of your rooms and on window and door frames.
Quick bursts in the construction of affordable housing can lead to a drop in home prices because of the sudden increase in options, transforming the housing market into a buyer’s market.
Sometimes the development on its own does not have a significant impact on property value in the area, as much as the difference in standards between the new development in comparison to existing houses.
Some studies support the correlation between a drop in real estate prices in high-income areas and the completion of low-income housing tax credit (LIHTC) developments in the neighborhood. It is attributed to a high turnover rate in the existing properties which suddenly floods the market with listings.
A wise real estate agent will also take advantage of the location to advertise the cheaper houses in the new construction as affordable deals in an upscale neighborhood.
Your low-income buyer will be thrilled by the concept, and you will start getting lower offers. This pushes the overall selling price downwards for all houses
You should note that when the LIHTC developments are located in already depressed neighborhoods, home values are not impacted negatively (the comparison is key).
Some developments like commercial properties with decent shops, restaurants, clubs and other amenities improve the neighborhood’s ambiance and raise property value.
The construction process can make the home viewing an unpleasant experience for your buyer. Let’s begin with noise from early morning drilling, a jackhammer or pile driver as the builder continues his work.
The development might also be overbearing next to your house, obstructing the view from your windows.
The new development will also come with its own vehicle traffic. It easily spills over, so the neighborhood sidewalks and street lanes are blocked. The buyer might feel like the area is too congested for their taste and decide to withdraw their offer.
If there are major development plans near the property, lenders will be cautious about fronting funds to purchase these houses.
Consequently, potential buyers who depend on mortgage financing will have to deal with expensive loans with high interest rates or won’t even bid on the house. This can be a big chunk of your prospective buyers
Shared amenities like sewerage lines and electricity can also be compromised during major construction. Mortgage providers will be working with the assumption that they are out of your control. They will be wary of gambling with possible effects of the development on the house’s value in the future.
There is a need to develop affordable housing to avoid a housing crisis. You should be prepared for a housing development near you to make the right moves when the time comes.
Make sure whoever is viewing the listing knows it is a special house worth their money. Highlight your unique advantages, like enough space for a double driveway, which the new development likely doesn’t have.
Emphasize your nice location with proximity to amenities, your big yard and any other outstanding feature. You need to capture the right buyer’s attention.
Make sure the house is in the best shape for staging a home. Execute minor repairs, paint where necessary and keep it clean.
However, you should be careful not to spend more than the value it will add to the house. You will be eating into your equity in a way that can’t be recovered from the sale.
A few changes will lessen the negative impacts of the new development. You can enhance the yard’s landscaping, so the prospective buyer has something to see besides the overbearing development.
Replace the windows with triple pane windows to prevent construction noise or ensure home viewers are never exposed to the noise.
Talk to the main contractor who oversees the project and see if you can work out a schedule for when you will be staging the home for viewing. Let them also share their schedule so that you will know when to expect noise
One of the reasons you may not be getting offers is that your asking price is not competitive in the market.
It is easy to get sentimental because of your work in the house, to the extent that you want to recover every last dime. Compare your listing with similar houses in the neighborhood to get a reasonable price.
Can I still sell my house for cash?
The market eventually stabilizes once the development is complete. If you don’t have to move, you can stay put until it does so that you can sell your house at its true market value.
If you have to move out, you can look for a rental property in your new city while waiting for the market to correct itself.
This may not be possible if you have a monthly mortgage payment to satisfy as well. Sometimes the projects last for many months, making it difficult to sustain the disruption in your work and home lives. You may have to look for a cash buyer if the offers are not forthcoming.
A cash buyer will always be willing to buy the house as is. It could be another developer who wants to transform the house or an investor who intends to rent it out or flip it for profit.
It is a quick way to release the house, especially if you have equity. Your closing costs will be reduced significantly, and you can execute the deal without a real estate agent.
WeBuyHousesinDenver.org is a cash for houses company and we are experts at buying houses in Denver and all of Colorado. Our mission is to give the people of the Mile High city the best solution to sell any house. We pay cash for houses, so when you sell your house to us, there are:
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