Ongoing construction projects can affect the real estate market in Ohio considerably. For example, these projects can influence property values and buyer-seller dynamics.
Considering construction matters in your transactions can overall be a delicate balancing act.
Property values
One notable effect of construction on real estate transactions is the fluctuation of property values. The presence of construction sites can either enhance or diminish the value of neighboring properties.
On one hand, the development of modern infrastructure, such as new roads or amenities, can boost property values. On the other hand, the noise, dust and disruption can potentially decrease property values.
Timing
Sellers may find it advantageous to wait until a construction project is complete. This can positively impact the market value of their property.
Conversely, buyers may seek opportunities to purchase properties in the early stages of construction, hoping to capitalize on potential future value appreciation.
Permitting and zoning
Construction projects are subject to various permitting and zoning regulations. These considerations may impact the feasibility and timelines of property developments. Buyers and sellers must be aware of the regulatory landscape to navigate potential hurdles and ensure that the construction plans align with local ordinances.
Potential delays and contingencies
The construction industry in Ohio is healthy, with a 30% increase in worker hours in 2023. However, a booming industry does come with some potential downsides.
Real estate buyers may encounter unexpected setbacks, such as permit delays or construction disputes, which can affect the closing timeline. Sellers, in turn, need to be aware of the potential impact of ongoing construction on the marketability of their property. They should be able to address buyer concerns and contingencies related to the construction activity.
Buyers and sellers alike must be aware of these factors to make informed decisions in the ever-evolving landscape of Ohio’s real estate market.
