This home in a nice, older area of Tulsa, Oklahoma suddenly increased in value when the tree accidentally crashed into it.

Not due to excessive insurance, but something much more interesting. Can you think of why?

The house is in a historical district, so renovations are severely limited. By virtue of the destruction it became possible to get building permits to do structural and functional upgrades. Everything can be rebuilt to look as it did before, but with modern materials, methods, and features.

Local planning department and city council decisions have a significant impact on home values. If you are considering a purchase it’s important to talk with city or county officials about existing restrictions or future plans which will affect the property.

As a Realtor I have seen homes lose value when adjacent properties are developed. That beautiful field full of wildflowers you see out your window today may become ugly apartments someday.

As an Investor, I look for ways to increase value, or find hidden value in properties. Can a plot be sub-divided?  Can we rent air space to a billboard company or to cell phone towers? Can we get the zoning changed? All of these options are possible if you understand the local laws and work within the rules to make your property more valuable.

It’s almost always wise to check building permit history before you make an offer on a house. Knowing the permit status gives you critical information to help you make a sensible offer. Last year I saw a home in Concord which had a large, un-permitted, addition. A few days after we viewed the home, the city forced the Seller to demolish and remove the addition. In the past year I have been to the town planning department in Danville to get information about septic tank upgrades and the cost of connecting to city sewer. They sent me to the proper agency to get accurate information. The hidden costs of buying that home were over $70,000! I talked to Walnut Creek for a client who wanted to buy a home, but we suspected that the back property was going to be developed. As expected there were approved plans to build condos where the oak trees and open field were. The City of Dublin’s Planning Department is very cooperative and helpful. Don’t be afraid to go down and get their help with these sorts of things.