5 Effects of New Construction in Your Neighborhood
5 Effects of New Construction in Your Neighborhood
Full Transcript of Video Below
[00:00:00] Good morning, real estate fans, Alice Lema here, broker John L. Scott here in beautiful Southern Oregon here with another edition of our weekly podcast. We do this podcast every week, talking about all things, housing and all the tangent topics that go with that. Whether it's residential, commercial, buying, selling tenants, landlords. The whole ball of wax.
[00:00:21] And today I'm so excited to bring you the topic of new construction. And we're doing a little twist on new construction talking about the five affects that new construction can have on your neighborhood if it's going on around you. So before we get into that, just want to take a quick minute and ask you to like our topics to send it to your friends, subscribe to our channel.
[00:00:42] This is an educational series. We really want to know what you think and if it's helping or not, and we want to get the word. Okay, so here we go. Five effects, new construction can have on your neighborhood.
[00:00:53] First of all, noise. Now, again, we're talking about you living in a neighborhood next to, or nearby new construction. So you're going to have noise and it's going to be early in the morning and sometimes late at night. And you know, the people doing the work, don't always remember what it's like to live near them. So it could be hammers, saws, trucks, cars. Some of them bring dogs. And barking can sometimes happen. They're not supposed to, but some of them do. So if it does get to be a nuisance, you can call the city or talk to the contractor. But noise is definitely when they you're going to have large trucks, vehicles going in and out.
[00:01:33] And you know what else you're going to have strangers. Cause there's so many looky-loos and I do this too. I'm guilty of this, but everybody wants to follow the trucks. We all want to see what's going on. Plus we might want to buy something.
[00:01:43] So that's number one. There's going to be. Infiltration of noise, large vehicles and strangers. So if you're nearby a new construction site or like right next to one, I think you need to take a minute and prepare your family and your property for the influx of that.
[00:02:01] Number two, your taxes are very likely to go up, even though you're not in that new subdivision. At least in Southern Oregon, a lot of times, you know, the values go up around the property. Not as much as the taxes are going to be for the new construction, but you just got to prepare yourself that all of a sudden that little region is more valuable.
[00:02:21] So number two is taxes, taxes, taxes. And actually, since, you know, so many states are struggling after the COVID shut down. And, you know, we have inflation and a weird economy right now. I mean, it's, it's good. Don't get me wrong. I'm not saying the world is coming to an end, but I think a lot of states are looking around for more revenue.
[00:02:41] And so taxing adjoining neighborhoods a little bit more can certainly help them, but be prepared for that. And if you are worried, you can always call your local tax assessor and ask them the question, because they may have a mathematical formula for that. So that's number two, taxes, taxes, taxes.
[00:03:00] Number three on a positive note, cause I always ,like start to sound like a Debbie downer. Number three is you're going to have upgraded systems upgraded sewer, upgraded streets, more street lights as more sidewalks, stuff like that. Because when you do a new development, most of the municipalities make the developer put in all the latest and greatest stuff.
[00:03:22] And that can have a benefit to you, even if it's not your street or your sewer, yours might be upgraded alongside it, or at least you'll have that nearby. So that can be a benefit. And again, you can, okay go to the planning meetings or you can contact your municipality or your county to find out exactly what's going on.
[00:03:41] But then the side effect of that is if they are improving your area, then you want to know about road closures. And I mean, we had a situation in east Medford where people could not get into their property for a few weeks. They had to park along the side because they were putting it in apartment buildings.
[00:03:58] And we're going to talk about that next, what kind of new development is going in, but so the streets I think doubled in . The sewer drains were bigger than me and I'm five foot four. They're just like giant. And yeah, so it was months and months and they had to park their rigs and walk. But they didn't have to do that for very long.
[00:04:16] The, the workers were really good about helping, you know, create little ways of them getting in. But that's a thing. So again, information is mandatory and then you can kind of prepare. So that's number three is upgraded sewers and systems and streetlights and sidewalks and all that. And that can be a real positive.
[00:04:35] Number four is density. So nowadays it seems like most of the developers are doing smaller lots, even if they're doing luxury homes or upgraded housing, a lot of them are doing smaller lots. And then we still have some big apartment developments and things like that going in. So understand that there's going to be more people once this is all said and done, and they put the hammers down and they leave. You could have a lot more people in your area.
[00:05:03] And some of us, especially in Southern Oregon, we like our elbow room. So we do have a bunch of people that are moving ahead of time. As soon as they, they get wind that a subdivision is going in, even if it's homes, even more so, if it's apartments they're selling. These developments take a year or two, sometimes two to get finished or get far enough along that the world realizes something's going on.
[00:05:25] So if you can be proactive and know what's going on in your area and you want to sell, you want to get away from that, you can do it early.
[00:05:33] And then number five is a lot of times your value goes down when you're near construction, new construction. And it's not so much, I mean, a little bit is with the noise and just the commotion, but here in Southern Oregon, we're a little bit different than big cities.
[00:05:50] Like in big cities, it does take the value down during the time that construction is going on because people, people are fussy. They don't like all that noise and commotion. And in Southern Oregon, it's more of a softening in the prices on the existing property because now there's this other selection. And a lot of the builders will price it so that they're going to sell.
[00:06:13] And sometimes that's not in a good proportion to the existing houses around them. So the neighbor's property values could suffer a little bit and maybe it doesn't go down. It just doesn't go up as much as it was. But having watched this for as many decades as I've been in Southern Oregon and been fascinated with real estate and working in real estate, it does seem that it bounces back after a while, but it can take several years.
[00:06:37] And again, it's all depending on the economic condition, the kind of subdivision and the kind of house you have, you know, blah, blah, blah, blah, blah, blah,. I just don't want you to walk around thinking automatically that, because you have new homes near you, you're going to make money, because that's not usually the case, at least initially. Usually your neighborhood goes down a little bit.
[00:06:58] Okay. So those are the five things that can affect you and your neighborhood in your home. If you have new construction going on next to you or around you, just a quick note. If you're looking to buy new construction, please get representation.
[00:07:12] You don't want to be negotiating directly with the builder or the builder's agent. They're all lovely people. I work with a lot of them, but you want representation. You want somebody to be on the buyer side? So that's just our little extra tip.
[00:07:25] Okay. I'm Alice Lema, broker. John L. Scott here in Southern Oregon. I want to be your agent. Hope you got something out of this. I'm working all weekend. So give me a call, give me a text. I'm a great buyer's agent. I'm a great listing agent. We can make things happen for you and get you onto the next stage of your, so give me a call, give me a text (541)301-7980.
[00:07:48] Have a beautiful Southern Oregon weekend. And if you're not here in Southern Oregon, have a beautiful weekend anyway. Maybe thinking about getting up here to Southern Oregon, we'll talk to you next week. Bye now.