tag:blogger.com,1999:blog-63137985773137612092024-03-13T21:57:04.458-07:00External Obsolescence blogUnknownnoreply@blogger.comBlogger15125tag:blogger.com,1999:blog-6313798577313761209.post-60298180383192449852016-07-24T10:47:00.000-07:002016-07-24T10:47:06.462-07:00Suffering from external obsolescence<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/A9vw8yczbBY" width="420"></iframe><br />
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External obsolescence is something outside of the property boundaries negatively affects the value. In this case a nice custom home was built backing up to railroad tracks. This is a terrible location for a residenceUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-19180699477843688162014-07-22T08:55:00.001-07:002014-07-22T09:04:22.231-07:00External obsolescence effects appeal and marketability<br />
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External obsolescence is nothing more than a bad location. The value of<br />
residential property is maximized when it is located on a quiet residential street. In <a href="http://www.appraisercitywide.com/Elmwoodpark" target="_blank">Elmwood Park</a> a single family home is located on a busy arterial street adjacent to multifamily property and in close proximity to commercial property and railroad tracks. A terrible location for a single family home. http://www.appraisercitywide.com 312-479-5344<br />
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<iframe allowfullscreen="" frameborder="0" height="270" src="//www.youtube.com/embed/jy7NI9DWMKk" width="480"></iframe>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-67042219963966859362014-07-17T07:56:00.001-07:002014-07-17T07:58:05.598-07:00Residents of the Roseland neighborhood of Chicago worry about future external obsolescenceThe Chicago Transit Authority plans to extend the Red Line from 95th Street to 130th Street. To do so 259 parcels of real estate will need to be taken according to the <a href="http://politics.suntimes.com/article/chicago/roseland-residents-want-cta-answers-red-line-extension-plans/wed-07162014-702pm" target="_blank">Chicago Sun-Times.</a><br />
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Out of the 259 parcels there will be 95 residential properties that would be displaced for the right of way. A group of homeowners met with the CTA yesterday for more information.<br />
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Those that have their property taken by eminent domain will be paid fair market value under federal guidelines reported CTA President Forest Claypool. "To establish the fair market value of a condemned home, CTA spoksmen said, the property owner would arrange one appraisal and the DTA and federal government would arrange a second.<br />
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Other residents worried about what it would be like to live next to an elevated line. Property that is in a quiet residential neighborhood today will suffer from external obsolescence in the future. <br />
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<a href="http://www.appraisercitywide.com/" target="_blank">Citywide Services</a> real estate appraisers performs residential appraisals in Chicago and suburbs 312-479-5344Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-73318548269976900372014-07-06T09:26:00.001-07:002014-07-06T09:58:04.329-07:00External obsolescence in the Galewood neighborhood of Chicago<br />
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When appraisers talk about external obsolescence they are referring to something outside of the subject property that is a negative influence. This house is built on an arterial street in close proximity to cell towers, a hot dog stand and gas stations, all having a negative affect on appeal and marketability. http://www.appraisercitywide.com<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-502234030286021112014-07-05T11:12:00.001-07:002014-07-05T11:34:24.834-07:00External obsolescence that effects a condominium building<br />
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<iframe allowfullscreen="" frameborder="0" height="270" src="//www.youtube.com/embed/N4McLR6Maco" width="480"></iframe> This condominium building in <a href="http://www.appraisercitywide.com/RiverForestVillage" target="_blank">River Forest </a>has external obsolescence due to a poor location on an arterial street with close proximity to commercial property. This negatively effects the appeal and marketability of this condominium building. With it's location on a arterial street it has noise from excess traffic not found on a residential street. This building backs to a 7-11 that is open 24 hours a day, so all day and night there is traffic and noise. Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-83692988848265668642012-04-08T06:04:00.003-07:002012-04-08T06:09:33.918-07:00Bad location close to elevated train<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimG7oBVhTr1hQQQb8CY0jGRV-UNJiqbNCQQKK7Zr0T2sfUkY7CQV7cTUeldGUn1qHBkPCQMxWQrbCdCkDpTkiY7TUyaaCqq9qJs0IYiiaxoBwxi8BQj4nHJhfW18zcBA8YE7UDdBDho18/s1600/External.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 320px; height: 239px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimG7oBVhTr1hQQQb8CY0jGRV-UNJiqbNCQQKK7Zr0T2sfUkY7CQV7cTUeldGUn1qHBkPCQMxWQrbCdCkDpTkiY7TUyaaCqq9qJs0IYiiaxoBwxi8BQj4nHJhfW18zcBA8YE7UDdBDho18/s320/External.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5729015100058510578" /></a>Here is a new loft conversion in Chicago's <a href="http://www.appraisercitywide.com/Lakeview">Lakeview</a> neighborhood.<br /><br />This complex suffers from external obsolescence due to its proximity to the CTA elevated train line. <br /><br />It seems there is always someone that will buy a bad locationUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-36224357330055953412010-01-30T11:45:00.000-08:002010-01-30T12:08:43.897-08:00Proximity to Multifamily Buildings<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmTiocDPfzRc846KtYJoJ1m9RIJmCE9HqBTIJJQZDHJh5nw9VWzJ6JxDSGu6z3Z2_0wqHo8-nU-kSY7aYBkP1OvpmtgjtDGFfXopGHeLAzixVsULEphq9Za387lo99is1HQaWs_sx-D-o/s1600-h/IMG_7822.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmTiocDPfzRc846KtYJoJ1m9RIJmCE9HqBTIJJQZDHJh5nw9VWzJ6JxDSGu6z3Z2_0wqHo8-nU-kSY7aYBkP1OvpmtgjtDGFfXopGHeLAzixVsULEphq9Za387lo99is1HQaWs_sx-D-o/s320/IMG_7822.JPG" alt="" id="BLOGGER_PHOTO_ID_5432615531756718658" border="0" /></a>This nice Elmwood Park bungalow is located on a major arterial street, it faces commercial property and is flanked on both sides by apartment buildings.<br /><br />Now this may be a great location for an apartment building, however, the proximity to all this external obsolescence makes it a bad location for a single family home.<br /><br />The value of a single family home is maximized when it is surrounded by other similar residences.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-41990344418782388452010-01-30T11:40:00.000-08:002010-01-31T08:33:17.157-08:00<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX4O6GMRu3q9__Ma-2_jUWOj0VqEH-cDgTbZjF8hfDX4GAe4c3UjAXy4Mv59j05JpyCGIdkijvf6OFngz4P_zG86VbUwLskQsrrrXCNYLCbyMtb-PA0HzsHiWvG_fF3iWNuMYf23yhczw/s1600-h/IMG_7827.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX4O6GMRu3q9__Ma-2_jUWOj0VqEH-cDgTbZjF8hfDX4GAe4c3UjAXy4Mv59j05JpyCGIdkijvf6OFngz4P_zG86VbUwLskQsrrrXCNYLCbyMtb-PA0HzsHiWvG_fF3iWNuMYf23yhczw/s320/IMG_7827.JPG" alt="" id="BLOGGER_PHOTO_ID_5432620450091952450" border="0" /></a>Here is another example of a single family home flanked by apartments and located on an arterial street.<br /><br />This prairie style home is located in Chicago's <a href="http://www.appraisercitywide.com/austin">Austin</a> neighborhood and was designed by architect<a href="http://www.appraisercitywide.com/WalserHouse"> Frank Lloyd Wright</a>. One can only imagine the difference in value between this house in its bad location and a nice quiet residential location.<br /><br />One thing that is sure about real estate is change. Another thing to keep in mind is that property on arterial streets will change faster than residential property back in the neighborhood.<br /><br />107 years ago when<a href="http://www.appraisercitywide.com/franklloydwright"> Wright </a>designed this property Central Avenue was still an arterial street. In 1903 the level of traffic & noise was nothing like it is today. This home may have been flanked by similar residences that were torn down and now the land is used for apartments. The level of external obsolescence has changed over time.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-70068652712378366662010-01-21T15:28:00.000-08:002010-01-21T15:48:12.967-08:00On Arteral Street & Faces Cemetery<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiqojgcrrjZNkjD2GrT9VVDuI2Azqv4yytK1amAuQ9h9nq6bJBTJeogd12PBN4F2M8TF31NWHvkLlCpls_vrdi0r5GoGLkhiRuS_vEfYkPi6JpzJavoneKj8EPU7OXxa4XrGTk0WrVd34/s1600-h/IMG_7772.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiqojgcrrjZNkjD2GrT9VVDuI2Azqv4yytK1amAuQ9h9nq6bJBTJeogd12PBN4F2M8TF31NWHvkLlCpls_vrdi0r5GoGLkhiRuS_vEfYkPi6JpzJavoneKj8EPU7OXxa4XrGTk0WrVd34/s320/IMG_7772.JPG" alt="" id="BLOGGER_PHOTO_ID_5429339389627997810" border="0" /></a><br /><br />Here is a bungalow currently listed for sale in Chicago's Dunning neighborhood with multiple forms of external obsolescence.<br /><br /><br />First off its located on an arterial street and then it faces a cemetery.<br /><br />This poor location is having an affect on its appeal & marketability, the house has been listed several time and has spent about 450 days on the market.<br /><br />Yes location, location, location that's what its all about. When this thing sells you can bet it will be at a discounted price<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiK_uYV8ByhwByZC-xumgb4vUJluBWFZEO0j3LLun5eHbQsn3QFN0ctZclVIy2nW-Uuv7Gnx81DoCDjxOUJwtOvpKfZIx-jGyIBdm1qbV30kJ05BsAoAZ3axmly-KVIpryzBNEahNrr1C8/s1600-h/IMG_7773.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiK_uYV8ByhwByZC-xumgb4vUJluBWFZEO0j3LLun5eHbQsn3QFN0ctZclVIy2nW-Uuv7Gnx81DoCDjxOUJwtOvpKfZIx-jGyIBdm1qbV30kJ05BsAoAZ3axmly-KVIpryzBNEahNrr1C8/s320/IMG_7773.JPG" alt="" id="BLOGGER_PHOTO_ID_5429339378441515970" border="0" /></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-51197328377400809432010-01-19T07:30:00.000-08:002010-01-19T08:03:25.853-08:00Backing to Railroad Tracks<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7oGHTNyENdsTTGuNIorcQilKO9lSPJesZdxu_o7yugwRhSsetrpnWDG6sBDFzoCsZ0RDvRn9jZziQZp8Yz4ZPS2cln3De9egwxtdJKuIleFF6e19X5E50innZUvfuv2I8puVlVIgtNQc/s1600-h/IMG_7325.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7oGHTNyENdsTTGuNIorcQilKO9lSPJesZdxu_o7yugwRhSsetrpnWDG6sBDFzoCsZ0RDvRn9jZziQZp8Yz4ZPS2cln3De9egwxtdJKuIleFF6e19X5E50innZUvfuv2I8puVlVIgtNQc/s320/IMG_7325.JPG" alt="" id="BLOGGER_PHOTO_ID_5428186000338491490" border="0" /></a>They say Real Estate is all location, location & location, so why does someone build a nice custom built home on the worst lot they can find?<br /><br />This custom buitl split level is in Chicago's Garfield Ridge neighborhood. As you can see it backs up to railroad tracks. In addition it sides on a four lane arterial street. Behind the tracks is commercial property, across the arterial street is commercial property and its close to the Midway Airport flight path.<br /><br />Multiple forms of external obsolescence, nice house, real bad location.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-53366443642537950442010-01-18T07:00:00.000-08:002010-01-18T07:21:40.569-08:00Proximity to Low Flying Aircraft<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjny_UV90NdnB76aE3gQqT5U_Uuc1A4xDDV4-4Uy89xdVWa54hQilh06WuBHwWwq6YD_AtocXZc-edwpjt3CisnadVQNeyKa70XfNObUTM0uLWETNvhTrcWnf3R3IVUYVfFfKCQx3mz_ic/s1600-h/External.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 230px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjny_UV90NdnB76aE3gQqT5U_Uuc1A4xDDV4-4Uy89xdVWa54hQilh06WuBHwWwq6YD_AtocXZc-edwpjt3CisnadVQNeyKa70XfNObUTM0uLWETNvhTrcWnf3R3IVUYVfFfKCQx3mz_ic/s320/External.jpg" alt="" id="BLOGGER_PHOTO_ID_5427817145413946642" border="0" /></a>Here is another example of homes with multiple forms of external obsolescence. In addition to being on the Flight Path from O'Hare International Airport some of those in this photo back to railroad tracks.<br /><br />External obsolescence from being under the flight path of low flying aircraft is a big problem for people living in <a href="http://www.appraisercitywide.com/ParkRidge">Park Ridge</a>, <a href="http://www.appraisercitywide.com/Norridge">Norridge</a>, <a href="http://www.appraisercitywide.com/HarwoodHeights">Harwood</a> Heights, Des <a href="http://www.appraisercitywide.com/DesPlaines">Plaines</a>, <a href="http://www.appraisercitywide.com/MountProspect">Mount Prospect</a>, <a href="http://www.appraisercitywide.com/ArlingtonHeights">Arlington Heights</a>, <a href="http://www.appraisercitywide.com/ElkGroveVillage">Elk Grove Village</a>,<a href="http://www.appraisercitywide.com/Bensenville"> Bensenville</a>, <a href="http://www.appraisercitywide.com/Itasca">Itasca</a>, <a href="http://www.appraisercitywide.com/WoodDale">Wooddale</a>, <a href="http://www.appraisercitywide.com/Elmhurst">Elmhurst</a>, <a href="http://www.appraisercitywide.com/addison">Addison</a>, <a href="http://www.appraisercitywide.com/FranklinPark">Franklin Park</a>, <a href="http://www.appraisercitywide.com/SchillerPark">Schiller Park</a> and parts of <a href="http://www.appraisercitywide.com/ChicagoNeighborhoods">Chicago</a>.<br /><br />If you live in close proximity to an airport there is no way to avoid airport noise, its just typical for the area, but if you can avoid it don't buy a home that is directly under the flight path.<br /><br />Now its easy not to buy a home backing to railroad tracks, but how do you avoid buying one under a flight path. Now you can stand in front of a home you are interested in and watch the sky and look for aircraft. This would be ok except they use different runways depending on the winds. So one day no airplanes and its quiet, and three days later 100 flights per hour.<br /><br />If you are planning to purchase a home in any of the communities in close proximity to the airport this is what I recommend. Most maps show the airport runways. If you extend a straight line out from the runways to the community you are interested it will give you the flight path of the aircraft. Most of the takeoffs and all of the landings will be on a straight line. If that line intersects with your potential purchase, its on a flight path.<br /><br />A good web site to track aircraft is<a href="http://flightaware.com/"> Flight Aware</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-3482800305881158042010-01-17T09:24:00.000-08:002010-01-17T09:58:13.674-08:00Proximity to Rapid Transit<span style="font-weight: bold;">Not a good location for a residential property</span><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2abGH10xX1SYnBW3TIV0WBxvecjQsx2P7rM4KlzFMQg4jU4m9fTKxEsK-EcIL0KFt_Ig38Sb7PJUxXZo9bCi0Krh3avvMPqtmLefpw9Z4Qgj75BCwKIIzr-ZPWrODaVBGIGoC_n3htKQ/s1600-h/IMG_7725.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2abGH10xX1SYnBW3TIV0WBxvecjQsx2P7rM4KlzFMQg4jU4m9fTKxEsK-EcIL0KFt_Ig38Sb7PJUxXZo9bCi0Krh3avvMPqtmLefpw9Z4Qgj75BCwKIIzr-ZPWrODaVBGIGoC_n3htKQ/s320/IMG_7725.JPG" alt="" id="BLOGGER_PHOTO_ID_5427761291167197810" border="0" /></a>These are some two flats in Chicago's <a href="http://www.appraisercitywide.com/archerheights">Archer Heights</a> neighborhood that were built along the tracks for the CTA Orange Line. When they built the tracks there was space left over so they sold the lots and built apartments. Who knows some of these may be condo's.<br /><br />What a poor location this is. Think about the noise of passing trains 18 hours a day, no early to bed and definitely its early to rise.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDsVYGHfTEK-zi6EY_B2Z07UlPrwSDpDYt4eT1pNqNo7xlOxa167nCyBaRYWebk9DRHOZoyoQAqt_QsH-WorU6vEOYbK15rsFoepdg_DGQ8Cg3rarnTrX1F726POMuWS0I1zwzbhlLNJ4/s1600-h/IMG_7724.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDsVYGHfTEK-zi6EY_B2Z07UlPrwSDpDYt4eT1pNqNo7xlOxa167nCyBaRYWebk9DRHOZoyoQAqt_QsH-WorU6vEOYbK15rsFoepdg_DGQ8Cg3rarnTrX1F726POMuWS0I1zwzbhlLNJ4/s320/IMG_7724.JPG" alt="" id="BLOGGER_PHOTO_ID_5427761283611383922" border="0" /></a><br />With this type of external obsolescence rents will be lower, the landlord will have trouble keeping tenants for a long term and the apartment will stay vacant longer than a building with a normal location. When it comes to selling these turkeys, expect much longer marketing times & lower prices, all the effect of a bad location.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-30543467370156994742010-01-15T06:30:00.000-08:002010-01-17T09:59:28.014-08:00The Alley Influence<span style="font-weight: bold;">Minor but still has an affect on appeal & marketability</span><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoyqKyT8aJpEFvEpwokAyCeBNi1x7JpCaKTClf6V3M14s1bV1B2_iWhCctWvIeJ1-yZOsbfyheOaaPf1y93zhmjRpkuUBkvjJ0AIoozMJobNk2mCcKCaOsmDLRVQpDxILMeNNR9WFjTNI/s1600-h/MLS"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 250px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoyqKyT8aJpEFvEpwokAyCeBNi1x7JpCaKTClf6V3M14s1bV1B2_iWhCctWvIeJ1-yZOsbfyheOaaPf1y93zhmjRpkuUBkvjJ0AIoozMJobNk2mCcKCaOsmDLRVQpDxILMeNNR9WFjTNI/s320/MLS" alt="" id="BLOGGER_PHOTO_ID_5426713506442533474" border="0" /></a><br />Here is a nice little split level located in Chicago's <a href="http://www.appraisercitywide.com/forestglen">Forest Glen</a> neighborhood.<br /><br />From this MLS photo I did not see any external obsolescence. It was an active listing and I wanted to take a look at it. When I got there I found that it suffered from a minor form of external obsolescence known as "the alley influence"<br /><br />As can be seen from my photograph this property sides on an alley. A little fact that the MLS photo left out, or tried to hide.<br /><br />With a location like this there is increased traffic and the home is not as nice as it would be with a location in the middle of the block with no alley. Its minor, no real big deal, but this property is still for sale after 179 days on the market. Right now buyers have a lot of inventory to choose from and even minor obsolescence is given a hard look. <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8pAvmbVMapY8iM5_qQkrHCsA-K9sWmXen6RibwKspdaqxCdWicFyy45pfXs59m4dmbS5e0GlXyKyBCPEGHm5RpiulDTLx58QQpz9uRz6D_Xnc5qEQTx-UR4UbM71Ul9fyqhyTj73KCh8/s1600-h/Forest+Glen.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 320px; height: 219px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8pAvmbVMapY8iM5_qQkrHCsA-K9sWmXen6RibwKspdaqxCdWicFyy45pfXs59m4dmbS5e0GlXyKyBCPEGHm5RpiulDTLx58QQpz9uRz6D_Xnc5qEQTx-UR4UbM71Ul9fyqhyTj73KCh8/s320/Forest+Glen.jpg" alt="" id="BLOGGER_PHOTO_ID_5426716980091455762" border="0" /></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-53468700437779657032010-01-14T12:32:00.000-08:002010-01-14T12:55:02.379-08:00Arterial Street & Proximity to Commercial Property<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8yoYR12v8cDFErpLyPxGNftfecbR09hBKNMQH7xcUpH-lB0oyTGhcSZZlukcsOSAUuZ6RT5MbIcoY7xqPmxx8pfcJ7FUxOE3Jx5MmDVd8AFwCKj4e1G7wmNcDo-FAeWJVZWyx_FIRZqc/s1600-h/DSCN8087.JPG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8yoYR12v8cDFErpLyPxGNftfecbR09hBKNMQH7xcUpH-lB0oyTGhcSZZlukcsOSAUuZ6RT5MbIcoY7xqPmxx8pfcJ7FUxOE3Jx5MmDVd8AFwCKj4e1G7wmNcDo-FAeWJVZWyx_FIRZqc/s320/DSCN8087.JPG" alt="" id="BLOGGER_PHOTO_ID_5426697297646160274" border="0" /></a>Many properties don't just suffer from one form of external obsolescence. Here is a nice little bungalow in Chicago's Portage Park neighborhood. This thing is clobbered with bad external.<br /><br />First off its located on Cicero Avenue, a major four lane arterial street.<br /><br />Next its located in close proximity to commercial property. It's got a Taco Bell on one side and a IHOP on the other. The drive up window for the Taco Bell is adjacent to the property line.<br /><br />This is a terrible location for a residential home. You have noise from car & truck traffic, safety is a concern, you would not let your child play in front of this house. In addition odors from cooking, noise & lights from commercial activity may go on 24 hours a day, can I have your order please!Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-6313798577313761209.post-74792580348111595892010-01-14T11:33:00.000-08:002010-01-14T12:21:21.359-08:00External obsolescence - whats that?The Dictionary of Real Estate Appraisal defines external obsolescence as: "An element of accrued depreciation; a defect, usually incurable, caused by negative influences outside a site."<br /><br />External obsolescence causes a loss in value to your property caused by forces that you can not control like the current condition of the world economy. That's what it means when its says "usually incurable", you cant fix it and just have to live with it.<br /><br />The type of external I will deal with in this blog is "Locational Obsolescence" in other words a bad location. This is another thing you can't fix, if you buy a bad location, you are stuck with a bad location.<br /><br />Why do people buy a piece of real estate with a bad location? It beats me, as it appears there is some fool to buy every bad location out there.<br /><br />It might be that they think they got a deal on the property. In this blog I will show that you never really get a deal on a bad location. You might think its a deal when you are buying, but wait till you try and sell.<br /><br />And it just might be that the buyer does not think the location is bad. The location does not seem to bother them. Believe me it will bother prospective buyers when you want to sell.<br /><br />When a property has a bad location an appraiser says that the property "Suffers" from external obsolescence. This can be from a location backing to railroad tracks, located on an arterial street, the proximity to commercial or industrial property, low flying aircraft, smells, odor's, crime, ..etc..<br /><br />In the real estate boom years buyers were purchasing every piece of property offered for sale. That is not the case now, the MLS is loaded with listings for sale. No one is going to buy your bad location when they can get a better one for similar money.<br /><br />As a real estate appraiser in the Chicago area I run across properties suffering from external all the time. In this blog I will point out different bad locations, for you to keep in mind when you are considering a residential real estate purchase.<br /><br />My advice is "Just say No to a bad location.Unknownnoreply@blogger.com1