[ratlike]

I've been receiving mixed views regarding this, but I thought I would post here to see what people have to say.

My main Question is: Do corner lots appreciate at the same rate as other houses.

I know the price of the corner lot(assuming traffic) will be less than normal houses, but will they still appreciate over time at the same rate?

Let's say there are 2 identical houses on the same street - one is a corner lot with the adjacent street being a main street with light traffic passing by (the entrance to the house is not on the main st) and the other house is on the inner side of the street. The corner lot does not have a back yard, but has a decent sized yard on on the side(not towards the main street).

If the house on the inner side of the street is valued around $400k today, how much would we value the corner lot (accounting for the discount since it is a corner lot with some traffic noise and no backyard)? How much of a discount would we give because it is a corner lot (to make it fair market value)?

Lets say we value the corner lot at $350k (discounting 50k) today. 5 years down the road, the $400k(inner) house is now $450k. Would we be able to value the $350k(corner) house at $400k or would it not appreciate as much? They are still identical houses, so would a $50k discount for being a corner lot still be sufficient? Will it still motivate buyers?

 

[kcowan]

I think you can arrive at the right conclusion by considering the longer term. If the lots are now worth $2 million, will the corner lot be $1.95 million? I think not.

My son and my FIL both owned corner lots in the GTA. They both had more off-street parking than the regular lots. They both made out just fine.

 

[Just a Guy]

Each house is worth what someone will pay for it, no more, no less. I don't really believe the lot will matter in most cases, they will all remain relatively the same. Of course, there are times when one particular person can skew the numbers as well. For example, someone comes along who hates corner lots and is willing to overbid on the similar hose just to avoid the corner...or the developer who'd rather have a corner lot to build a duplex on than an inner lot.

Of course, the same can also happen in reverse. For example, I just came into a complex and bought two units well under value compared to what was selling...for a short time, I'm sure it'll affect the overall sale value of places (I've noticed that new listings have listed lower than they had been), but they aren't as low as I bought at. If a few of these hold out, the "baseline" for prices will start to rise again.

I think it all balances out in the end.

 

[carverman]

Each house is worth what someone will pay for it, no more, no less. I don't really believe the lot will matter in most cases, they will all remain relatively the same. Of course, there are times when one particular person can skew the numbers as well.


I think it all balances out in the end.

I agree. I have a corner lot and a nice back yard, cedar hedge for privacy, with a boat/trailer parking on gravel in the
back yard with gate entrance for this from the sidestreet, a cul-de-sac.
The real estate agent valued my property recently and used other properties sold on my immediate streets as a guide.

The corner lot while nice, doesn't really add to the value of the home as the home itself is where the prospective buyer would have to live in, and the type of construction and inside layout (kitchen, bathroom), heating/AC garage and finished basement adds more value to the property than just the corner lot.
However for my property assessment for property tax purposes, I have to pay slightly more property tax than my ajoining
neighbour (I'm in a semi-detached) because the neighbour has a smaller yard.

Now if the corner lot is zoned commercial and empty, so that a store or gas station can be built on it..that's another thing entirely.

 

[tygrus]

A corner lot on a busy intersection, with or without lights is likely a hindrance to appreciation.

However, a corner lot buried deep in a subdivision is gold, because it gives you design flexibility that no other lots have. You can build the house to orient two different ways, or you can have your garage entrance come off a different street than your house entrance and you can access you backyard directly with a vehicle or RV. Plus more street parking.

 

[sags]

I agree that it all depends on the size and location of the lot.

There are too many variables to specifically say it would be worth more or less.

Like every home it depends on what the owner prefers more.

In a way it is like an inground swimming pool. Many people don't want a home that has one, but there are people looking specifically for a home with one.

We owned several homes with pools, because we wanted one...............and had no difficulty finding a buyer specifically looking for a home with a pool.

Buyer preference is what matters.