The Breakdown On Buying Real Estate Near Construction
Buying near construction might not sound like a good idea, but NY1's Real Estate reporter Jill Urban explains why there are both potential risks and gains to be had.
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Nearby construction can often be the big negative on an otherwise perfect apartment. Many buyers will not even consider these homes once they see the construction vehicles.
Leslie Hirsch of Brown Harris Steven in Midtown says there can be positives to buying near new construction and buyers should consider a few things before walking away.
"Buyers shouldn’t reject a property just because there is a construction site next door. Often times there is a big fear factor — people are walking down the street and see a hole in the ground or a crane with a building going up — but it's not always a bad thing," says Hirsch. "A lot of times, new construction could be great for the neighborhood."
Buyers just need to find out all the facts. They should ask whether the view will be obstructed and the light will be impacted, which could affect quality of life and property value. They should also ask if the unit has "lot line" windows.
"['Lot line'] means is that if the property goes up next to you, they can block your windows," says Hirsch. "So where you once had light and a view, now you will have a brick wall to look at, and that is a very important thing to look into."
Then find out what the site will become. A new retail destination or a school could be good for the area and one's resale value. If a condo building is going up on a coop-dominated block, the condos will usually command higher prices and could eventually boost property values on the street.
A bar that is noisy and disruptive, however, could affect property values in a negative way.
Sellers who are afraid of construction's impact on their sales should make sure time is on their side.
"If at all possible, you should wait until the structure has already been built," says Hirsch. "That way buyers can see what the actual view will be. You should also wait until the noisiest part of the construction is over. Usually that’s the blasting period."
Finally, these days the sales market is tight because there is such limited inventory. For buyers ready to pouch, this could be an opportunity. In the right circumstances, a short-term inconvenience could translate to solid long-term investment.