Buying House Near Apartment Community or Commercial Areas

Buying House Near Apartment Community or Commercial Areas

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss buying house near apartment community or apartment complexes. Buying house near apartment community may affect homebuyers. There are many instances where buyers purchase a home near huge apartment complexes and are miserable after they move in. Buying a home is not like buying a car or other higher-ticket products. A house is a home where your children grow up. Many homeowners make lifelong friends with their neighbors. Memories are made.

Location of New Home Purchase is Key

Homebuyers need to feel comfortable with the location and neighborhood when buying a home. Buying House Near Apartment Community may have negative effects on some owners. Other owners may not mind. Think about the resale value and time frame when selling a property near larger apartment communities. Many homebuyers do not want to purchase a single-family home near apartment complexes.

Talk To Neighbors Before Buying House Near Apartment Community

Sellers may not tell you everything but neighbors will. Speak with neighbors and ask them about the pros and cons in living near apartment complex and/or business districts. Talk to more than one neighbor. See what their feedback is. Gustan Cho Associates empowered by NEXA Mortgage, LLC is a mortgage company licensed in multiple states with a reputation of having wholesale lenders with no overlays on government and conventional loans.

Mortgage Broker Licensed in 48 States with 160 Wholesale Lenders

Gustan Cho Associates has hundreds of alternative financing such as non-QM loans and bank statement loans for self employed borrowers. We have been taking a post-closing poll on clients Buying House Near Apartment Community and/or commercial zones. We will cover frequently asked questions by home buyers Buying House Near Apartment Community or homes backing into commercial businesses. Many folks are fine but there are families who really regret Buying House Near Apartment Community or business areas. This is a very important topic and needs to be addressed prior to entering into real estate purchase contract and closing.

Frequently Asked Questions By Home Buyers Buying Home Near Apartment Community Or Business Districts

Frequently Asked Questions By Home Buyers Buying Home Near Apartment Community Or Business Districts

Here are some common frequently asked questions by buyers thinking of buying home near apartment community and/or businesses:

    • The resale value of property
    • How long has the property been on the market
    • How much of a discount is the home versus homes not near apartment complexes and/or businesses?
    • Don’t be surprised if the subject property has been on the market for a while due to being next to apartment complexes and/or businesses
    • Is privacy important? 
    • Apartments are condensed and many residents may have smaller kids
    • Many young people occupy young residents: Do residents play loud music, drink out front, and/or fight often?
    • Will security be an issue?
    • Will parking be an issue? 
    • Parking can be an issue
    • This holds especially true during weekends when residents may have guests over

Why Buying Home Near Apartment Community Is Attractive

One of our borrowers has been looking for a 2,000 single-family home in the $225,000 price range in the Western Suburbs of Chicago. The buyer researched over 127 single homes within a 30-mile radius of his workplace. After 8 months of shopping for a home, he found a perfect home:

  • 2,300 square feet
  • 4 bedrooms
  • 3.5 bathrooms
  • Full finished basement
  • Built-in 2000
  • Newer roof and remodeling
  • Fenced 0.40 Acre Yard
  • Two car garage
  • Two-story with nice sized bedrooms and large kitchen
  • Comparable homes in the area go for $255,000
  • This home is listed for $210,000
  • Market time on MLS is 145 days
  • The market value of this home is $245,000
  • Home is a short sale with the lender-approved short sale price of $210,000
  • Most homes in the area sell within 38 days on the market

Okay, so what is the catch? Why is this home not under contract? Why has it not sold? If it is too good to be true, then it normally is, right? The issue this home did not sell and/or sellers needed to do a short sale was because the back yard is facing a busy car wash. The car wash is a full-service car wash that is open 7 days a week. It is fairly loud and the business does not close until 10 PM. For folks who sleep earlier, this may affect their sleeping time. The home is also nearby a 4-story 1970s style “box” style apartment. There are a total of 20 apartments in total. They are about 300 feet away from the house. The barrier between the single-family homes in the area and the apartment community is covered with 25 feet tall pine trees.

Due Diligence Prior To Entering Into An Offer

The home buyer loved everything about this home. The price was perfect. The layout was phenomenal. Quality of construction was more than he ever dreamed of. He initially took a pass and looked at other properties listed in this price range. Nothing close came to fruition. Our borrower decided to pull the trigger and closed on the home. It was the perfect home for this buyer and we will explain why.

Why This Home Near Apartment Community And Backing Into Car Wash Was A Perfect Home

Why This Home Near Apartment Community And Backing Into Car Wash Was A Perfect Home

Our client’s goal was to purchase a townhome for under $225,000. After two to three years, our borrower was going to sell this home and purchase a single-family home. His main goal was to purchase a 4 bedroom, 3 baths, 2 car garage home in this area. However, most single-family homes in this area compared to this home are going for $300,000. Our client is single with a fiance and plans in getting married within the next 24 months. They have no children. Both my client and his fiance work long hours and are hardly at home. They have no dogs. So they do not have to worry about a dog barking at the people at the noisy car wash.

Buying Home Near Apartment Community or Busy Commercial Zone

They plan on planting Blue Spruce Pine Trees as a barrier between the car wash and their backyard. Due to this phenomenal deal, the buyer does not need to buy a starter townhome. He can just purchase this single-family home that is PERFECT for him and his fiance. He is planning on having kids in the future and plans on staying at this home for many years to come. Buying Home Near Apartment Community And Backing Into Car Wash was perfect for him because of the great value.

Considerations Buying Home Near Apartment Community Or Business Districts

Here are considerations home buyers buying home near apartment community needs to consider.

  • The main issues that keep on arising is noise levels
  • Privacy is another concern they need to consider
  • Security is another major concern many have
  • Having many residents live next to you often get noisy with cars
  • Parties on weekends and special events is very common
  • Apartments have many visitors coming and going
  • If your bedroom is facing the apartment complex, this can disturb your sleep because of people coming and going at all hours
  • Apartment residents can be nosy neighbors where they may check you out when you are in your yard washing cars, playing with your dog, playing with kids, or doing yard work
  • Most homeowners adapt to this and much more after they move in
  • Depending on how large the apartment complex is, security can be an issue
  • This is because you may not know who are residents of the complex
  • Break-ins may be more common in apartment communities than in single-family districts

There are many home buyers who do not mind buying home near apartment communities. Others regret it and would never purchase their next home nearby apartments and/or businesses.

Resale Value Of Homes Near Apartments Or Commercial Properties

Resale Value Of Homes Near Apartments Or Commercial Properties

In general, homes nearby apartments or commercial properties are not considered favorable. Expect to get lower resale value than comparable homes that are not nearby commercial properties when you sell. Expect a longer listing market time. However, if you are getting a great deal when buying a home in nearby commercial areas, you should do fine. The home will appreciate other homes but may need to take a pricing reduction due to the apartments and/or businesses nearby. Again, there are many variables in buying homes nearby apartment communities and/or commercial properties. Take time in doing your due diligence. Talk to neighbors, realtors, and seller of the property. Weighs the pros and cons. It may be a great deal for that special buyer.

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