Stop!! You’re overbuilding!!

Is doubling the size of a house a good idea? Probably not because it will most likely be larger than anything in the neighborhood, which leads to superadequacy (being overbuilt for the neighborhood). I ran across this property the other day in Yolo County, and this house is definitely going to be oversized for the local market. Doesn’t it look like an entire 2-story house is being added to the back of the original house? What do you think this will do to property value?

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  1. BMD Dulfer says

    you sure that photo wasn’t taken in San Antonio, Texas? 🙂

    It’s really fun when the 2nd floor addition (no building permits, of course) is built over the chimney!!

  2. Paul Schlehr says

    looking at a FSBO that is overbilt for the neighborhood a 4/2 1/2 two story on .2 acres in a neighborhood of mobiles. similar houses in better areas within a mile.
    How do I compensate for the close neighbors in single & dbl wide trailers. ??

    • says

      Hi Paul. I suppose the best way to find if there is a negative reaction is to line up examples over time. I would definitely look back for years in this little patch of homes to find other sales of single family detached homes that have an influence of mobile homes. Is there any price difference with these sales and the ones that are a mile away? If so, then we know the market pays less for these homes and we cannot then blindly use them unless we give the “comps” less weight or make a downward location adjustment. This is an example where the proof is going to be in the market, but if you don’t have much data it’s going to be difficult to see that proof. In an ideal world you’ll be able to find some competitive areas that are trending at the same level. Where else are buyers paying a similar price? That might be a clue into value. Also you might look for other examples in the wider market where a home has sold next to mobiles. Any price reaction there? That might be good data for you. One last thing. I would ask yourself where the price ceiling is for this patch of homes. How much will buyers pay in this area before heading out somewhere else (like one mile away)? That’s always a reasonable question to ask when we’re dealing with something that looks like it might be overbuilt. I actually have a different overbuilt example in this post too in case it’s helpful:

      Best wishes. If you have any thoughts, let’s keep the conversation going.


  1. […] Obviously some of the points are only for fun, but you get the gist. If what you are doing is not consistent with the look and feel of the neighborhood as well as the expectations of the marketplace, then you’re probably overimproving your property. Watch a fun 30-second clip below of an overbuilt house I saw in Sacramento (and here is another in Woodland). […]

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