Does apartments next to a house bring the house value down?

Question

I gave an offer for a 3600 sqft home. they brought 80000 dollars down. i can get it for 275. K Hovanian homes. But there is some luxury apartment being built on the other side of the road. now this is a new community with million dollar homs around the other corner.

Answer 1

Hard to answer without knowing the exact details, but that seems like a big discount.   You should find out more when the appraisal is done.

Answer 2

depends on the apartments.  the ones next to my home do.  luxury apt shouldn't.  million dollar homes?  selling now in this market?  wow, what area do you live in?

Answer 3

Generally speaking in urban environments, apartments next to a single family residence will not decrease the value of the home, so long as the quality and condition of those apartments are comparable to the surrounding neighborhood. Often times as a neighborhood becomes increasingly popular, developers will exploit areas which offer higher density to construct luxury apartment complexes to accommodate greater demand to live in the area. If this is the case, one needn't worry about the value of a SFR being decreased, in actuality the value will likely increase, as the neighborhood become intrinsically more desirable.