Will the value of the Real Estate go up if a small acre subdivision paves their roads?
- Gravel and dust verses clean and smooth
- Less wear and tear on vehicles verses teenagers testing the gears in their parents tires
- Road grading maintenance and fees for this verses cost of getting the paving done along with occasional upkeep
From a value standpoint, I think when a road in a subdivision is paved, it does enhance the saleability of the homes in that subdivision. Keeping in mind that in our area, Billings Montana, only about 50% of the homes that are listed, sell. A homes value is mostly determined by the sale and it's comparables in the area.
From a buyer's standpoint, two similar homes, in the same area, one with paved roads, one without; I do believe that the value will feel higher on the paved subdivision side.
Home owner association fees are another consideration with road maintenance agreements. Some HOA's have difficulty in collecting fees from some homeowners.
In our area when a rural subdisivion is paved, the owners elect to develop a RSID or Rural Subdivision Improvement District that contains the cost of the project as well as maintenance of the project. This fee is inserted right into the tax bill of all the homeowners. Some RSID's may require an initial investment be made, over time, until the funds are available for the paving project.
I think the value does improve, but I'm not sure by how much. I also think quality of life in the subdivision improves with a paved road, but, that's just my opinion! What's your's?
The Quilting Realtor
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