Real Estate Minute Question

Hi, Michael: There is a proposed psychological hospital pending approval by County authorities 1/3 mile away from us.  If it is approved, will that fact affect/impact our home pricing if we put our home up for sale?  Thanks, Linda

Good question. 

There are many factors that affect a home’s value—i.e. proximity to schools, roads and noise, closeness to wilderness areas, prisons, even proximity to old gas stations, coffee houses.  In this case, a third of a mile is some distance away from the subject property and “distance away from” could be a factor.  If a Seller is aware a psychological facility is nearby, he should report this knowledge on appropriate Seller Disclosure documents.  If Seller knows about and does not disclose his knowledge of a material fact–such as a psychological facility–he/she risks a non-disclosure lawsuit down the road after a sale has been completed.

It is difficult to determine if a buyer who is interested in your home is concerned about, or doesn’t care one bit, about the existence of a psychological home located 1/3rd mile away. 

The long and short of it is that for some buyers it may affect the prospective home’s value and to other buyers, it may be no issue at all.  In my view, this is not a factor that automatically drops home value by “x percent” to every prospective home buyer.

Michael

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