How Retail Developments Increase Home Prices

Written by Posted On Thursday, 24 May 2018 11:55

When you buy a home, you want to do everything you can to make sure that its value increases. While you can’t control the market, you do have control over things like landscaping, renovations, curb appeal, etc. You can add an extra bedroom or renovate the kitchen to make it more attractive to both you and potential buyers should you choose to sell later on. Not only do you want to have control over things that will increase your home’s value, but you may also have some control over things that will decrease it.

 

As an example, you may be invited to voice your opinion on the building of an industrial building in your neighborhood. Or, if you live in an HOA, you may be invited to vote on whether or not another homeowner can do an addition that falls outside of the guidelines outlined in the agreement that could potentially create a neighborhood eyesore. Sometimes, though, you may get no say in something like the addition of a retail development to your neighborhood.

 

Many people are concerned about how retail developments will affect the value of their home; however, long-time retail developers like Peter Lowy (featured in Businessoffashion.com) know that retail developments often have no effect on or will even benefit homeowners and increase home prices in the end. Here are just a few of the ways that retail developments benefit homeowners:

 

Easier Access to Shopping

 

As nice as some people may feel it is to “get away” from the craziness of the city, there’s something to be said about having easy access to shopping. Nobody wants to have to drive 20 to 30 minutes to purchase groceries. When retail establishments go in, especially restaurants and grocery stores, the ease of access to shopping is not only convenient but a big attraction for potential buyers, especially since most neighborhoods are out of sight of the stores but a quick drive or even walk away.

 

Easier Access to Transportation

 

When retail developments go in, public transportation isn’t far behind. Busses, trains, trollies, etc. are made more available around public shopping areas, and schedules may even become more frequent, making it for homeowners in the area to save money by commuting publicly and avoid the everyday traffic. The addition or increase of public transportation can even noticeably increase the property values of surrounding homes, potentially helping sellers earn a profit.

 

Increased Neighborhood Desirability

 

School and neighborhood safety ratings are big factors for families when they’re moving to a new neighborhood, but other influencing factors can have a serious impact on a buyer’s decision as well. Things like neighborhood diversity, walkability, and even the retail establishments nearby can influence a buyer’s decision—especially if one of the nearby establishments if a coffee shop. Nearby retail establishments can increase a neighborhood’s desirability, especially if the stores are trendy and higher-end, (but still affordable), like H&M and other brand name clothing establishments or upscale grocers like Harmons and stores where customers spend a lot like Costco.

 

Buyouts from Businesses

 

If you’re considering selling and your home happens to be in a location that an incoming retail development needs to build or expand, you may find yourself receiving an offer from the business for a buyout. Typically, buyouts are at least for the amount of fair market value, and if you were considering selling anyway, it could be the perfect way to part with your home and move on to new things in life without all of the hassles of trying to sell.

 

Easy to Rent

 

Neighborhoods that are close to retail developments are often easier to rent since the ease of access to shopping is attractive to renters and the communities are typically well-kept. Whether you have an accessory apartment in your home or are moving but don’t want to sell, having retail establishments built in your surrounding area could make it easier to find quality renters and make a decent profit off of your home.

 

Increased Home Value

 

A lot of people worry that the building of retail developments will harm their homes’ value, but a lot of times people are pleasantly surprised to find that retail developments cause the value of their homes to go up. Because of aforementioned factors like increased public transportation, neighborhood desirability, etc., retail establishments can do a lot of good for home prices instead of damaging them like many assume.

 

Final Thoughts

 

While there are some things you can control to keep your home’s value from going down, and there are even some things you can do to help it go up, there are also a few factors that you can’t control, but they won’t all affect you negatively. Retail developments can increase home prices and help improve the neighborhood, making it a coveted place to live and helping homeowners earn extra money should they choose to sell. Are there any retail developments going in near your home? How do you think they’ll affect you?

 

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