Things that affect the value of a property that are not so obvious

It is commonly known that certain features of a property will affect its value, such as location, condition, views, etc. But there are other not-so-obvious elements of a property that can significantly influence the perceived value of that property to the general public or to the individual homebuyer. Here are a few examples:

ZONING – A property may have a single-family home on it, while the property’s zoning may allow for an apartment building or commercial use. The more flexible the zoning (i.e., the more types of improvements that can be built on the property), the more valuable the property.

EASEMENTS – An easement in your favor is the right for you to utilize a portion of someone else’s property, while an easement encumbering your property is the right for a person or entity (like a utility company) to use a portion of your property. An easement in your favor could enhance the value of your property, while an easement encumbering your property (depending upon where it is located on your property) could detract from the value of your property.

RESTRICTIVE COVENANTS OF THE NEIGHBORHOOD – Specific neighborhoods have rules and regulations that could enhance or detract from the value of the properties in that neighborhood. For instance, a view plane restriction could enhance the value of a home whose view is protected. The value of the property on which the view plane restriction is enforced, however, could restrict the buildable area and, therefore, may have a negative impact on the value of that property.

PAST HISTORY OF THE HOME – If a famous person lived in the home in the past, it could increase the value of that property. But notorious incidents such as past suicides or hauntings can detract from the value of the property.

POTENTIAL ROAD WIDENING – This allows another party (typically a government agency) to potentially take a portion of a property fronting the roadway to widen the road. In certain instances, the amount of road widening can be substantial. Not only can a portion of the land be taken away, but it would also significantly impact what can be built on the property in the future.

ARE PETS ALLOWED? – For many people, a pet is part of their family. Many condos have limitations on pet ownership. If a condo association does not allow a buyer to have their pet in the unit, it is unlikely that that buyer would purchase the unit at any price.

FLOOD ZONE CLASSIFICATION – Flood insurance can be expensive depending upon the flood zone classification. An extreme flood zone designation, which typically leads to higher flood insurance costs, can affect the desirability of the property. These are just a few examples of not-so-obvious features of a property that can have a significant impact on the value of a property. It is important that the not-so-obvious features of a property are considered along with the more obvious features when determining an offer price on a property (if you are a buyer) and a list price on a property (if you are a seller).

MYRON N. KIRIU
REALTOR, OWNER, CEO
BETTER HOMES AND GARDENS REAL ESTATE ADVANTAGE REALTY
CONTACT 808-864-9000
EMAIL myronk@betterhawaii.com
WEB myronkiriu.com