Commercial Development and La Plata, Maryland Real Estate Values

As many of you know, I have been watching new development in La Plata, Maryland very closely, and more than a few people have voiced concern about how commercial development will impact their home’s value.

Obviously, this is a sensitive subject, and I don’t want to be the one that yells “FIRE!” in a crowded building.  This is a legitimate concern for folks, so I wanted to break the issue down a little bit here.

WILL VALUES RISE?

Home values are very likely to be impacted, but it’s going to mean different things to different people, and location is a key factor.  Let’s start by looking at some of the positive impact angles first, and we’ll discuss negative impact in a bit.

As we say in the real estate business, the three biggest impacts on value are location, location, location.  Not only is it important to consider the location of your home, but also it’s surrounding location.

If you were to look at two identical homes, one in Indian Head and one in La Plata, which would be more valuable?

Most likely, the property in La Plata would be worth more.  Why?  A couple of reasons.

First, it’s interesting to note that for D.C. Commuters, a home in Indian Head is likely to be the same commute time (or less) than La Plata would be, and the commute to the Indian Head Naval Base would even be shorter.  La Plata, however, has a more developed local atmosphere.  There are more communities, more shopping, etc.  While Indian Head provides more space and generally larger lot sizes, The draw towards the community atmosphere is undeniable.

Secondly, there is an added convenience to living in La Plata.  The ability to get groceries, clothing, electronics, auto supplies, furniture, etc. without having to drive more than a few miles from your home is a must for many people.  Trying to accomplish the same goal in Indian Head is difficult, and the fact that amenities such as this are less convenient means that some people wouldn’t even consider living there.  This trends both ways mind you, but as development in Waldorf and La Plata has proven, there are more people looking for convenience than there are looking for that added person space.

When you consider that a development project like Kohl’s is adding to the shopping choices and convenience of the area, there’s no doubt that it will help to increase the value of living in La Plata because it makes life here more convenient.

Also, Quailwood residents in particular can attest to the fact that there is a trend of previous sales that shows properties on Quailwood Parkway sell faster than homes on the smaller side streets.  Again, this is due to the convenience of the location.  Those homes are seen by more people driving through the neighborhood that are looking to buy a home.  People still find and buy homes that they saw while “passing through” the neighborhood.

I have a home currently listed for sale on 111 Quailwood Parkway.  Anybody that passes through with home buying in mind is likely to see my listing and sign.  If they like the look of the home, they’re likely to call me about it.  If another identical home is for sale in Quailwood, but tucked away on a  quiet cul-de-sac, it is less likely to be seen.  The convenience of the location has helped to promote and sell the home, even though an identical property may be available on a less traveled road.

People are complaining right now about potential road traffic increases that Kohl’s would bring because of people using their neighborhood as a short cut to avoid Rt. 301.  This may be something that you’re opposed to, and I can’t say that I would blame you!  I am very happy with the fact that I live on a quiet road myself, and would not be happy with living on a higher traffic road.  It may be a cold comfort, but the fact is that IF more traffic were to pass through Oriole Ln.  It would create greater visibility for homes that were up for sale in that immediate area and may assist in helping them to sell faster.

WILL VALUES FALL?

I have spoken briefly on why prices may fall before, but there’s a lot of details involved in how prices may be negatively impacted.
The BIGGEST reason that home prices may be damaged is because of the VIEW (again; location, anyone?).  IF (and this is a very BIG if, I cannot say for certain what the final outcome will be)  The Kohl’s store were to be visible from people’s homes and/or back yards, that could be potentially detrimental to the overall ability to sell the home in the future.  There are lots of homes that don’t have a view of a loading dock, so unless you find a buyer who loves loading docks, there would need to be a reduction in value to sell a home with such a concern.

I say IF because we simply don’t KNOW what the final view will be.  Trees may help obscure the view, they may even solve the problem entirely, but it is possible(not certain!) that the immediate vicinity of the store could cause a negative impact.  There’s a good analogy of the negative impact here.

As I said at the begging of this blog, I don’t want to be yelling “FIRE!”, or causing panic, but these are concerns that need to be addressed.

If Oriole Ln. became a popular way for people to avoid taking 301 to get to Kohl’s, it can potentially diminish the quality of life for people living in the affected areas, yes.  While this may be less desirable to you, it is difficult to say that it would directly diminish the value of the homes on Oriole Ln.  Bear in mind that the average time on market for homes on Quailwood Pkwy. is less than that of other homes in the community, so while living on a road with less traffic may be more desirable, it is not seen by potential buyers as much as a home on a busier road.

WRAP UP
This is development is going to affect different homeowners in different ways.  There is a clearly defined benefit for some residents, and some *possible* drawbacks for others.  What’s nice about the added convenience is that it helps the region grow and offer added convenience.  It is the associated inconveniences that are upsetting people, and rightfully so.

The NIMBY (Not In MY Back Yard) concept is being played out very clearly for local residents to see.  The question is:  When all is said and done, who are the winners (The Developer; Some Residents)?  The losers(Possibly residents with a diminished view)? and what side do you fall under?

Questions? Ideas? Comments?  Call or Email me!