Real Estate FAQ: Should I Buy Extra Lots for Privacy?
Followers of my Lake Wallenpaupack Real Estate Facebook page may notice my series called Real Estate Fact Fridays. Every Friday, I post a random real estate related fact. This week’s fact is about Facebook CEO Mark Zuckerberg, who bought extra lots for privacy around his home. Of course, the irony here is Zuckerberg’s desire for privacy, because, well, Facebook. Ha ha!
This made me think of an FAQ that comes up often: “Should I buy extra lots for additional privacy?”
The answer is “It depends.”
HOA (Homeowner Association) Considerations
Is your property in an HOA or planned community? If not, extra taxes will likely be the only downside when you buy extra lots for privacy. However, if your home is in a planned community, additional fees will probably apply.
Depending on the community, the extra dues may be relatively low, or they may double for each lot. You may also incur more water/sewer fees even if you do not develop the lot(s). Be sure to check this out before agreeing to buy extra lots for privacy.
Resale Ramifications with Extra Lots for Privacy
A further consideration for those in a homeowner association is future resale value. Of course, many buyers would love privacy. However, most buyers may not want hefty dues in exchange for it! In some cases, adding extra lots for privacy may make it harder to sell your home. Days on the market could be increased. Also, you may need to purchase a resale certificate for each lot. The buyer may be charged a capital improvement fee for each lot. Depending on the fees, if you buy extra lots for privacy, it may deter rather help.
As always, caveat emptor is the rule: buyer beware! Know what you are getting into before you buy.
Related Topic: Finding “No HOA Lakefront Homes in Northeastern PA”