Is a corner lot worth more than an interior lot?
Like most things in real estate, the answer is, "It depends."
It's rare when you can get a direct comparable when looking at a home on a corner lot versus one on an interior lot. They're usually quite different.
The layout of the house on the corner will almost certainly be different from neighbouring houses. The size of the back yard will be different among other things that will make it difficult to make a direct comparison.
That being said, the consensus among Appraisers is this; if you have two identical properties with the same lot dimensions and similar structures with comparable build quality, you can expect the home on the corner to sell for a little bit less than the regular lot.
In my experience, I have yet to see a home on the corner sell for more than a similar interior lot save for when significant upgrades have been made. Apples-to-apples there is no disadvantage to an interior lot in terms of resale. It may even be an advantage.
"But.... the builder said it was a "Premium Lot!"
I know they said this. They want to recoup some of the extra cost associated with building a house on a corner lot. They're charging more because it costs them more.
A lot of times these homes on the corner are a little more costly to build. You likely have two facades as opposed to one on a normal house which means more brick and windows which equals more dollars.
Add to that the fact that the design of the corner house may be more costly to build and you'll see why builder's call corner lots "premium lots."
Property Tax Considerations
When a home fronts on 2 streets that means more sidewalks and streets to maintained by your city. In many municipalities, that means you can expect to pay a bit more in property taxes.
While many people love the idea of having a corner lot, the majority of people prefer to have an interior lot instead. The most common reasons gripes people have about corner lots are: double the traffic, less privacy, smaller back yard, higher property taxes.
Some people will love the fact that homes built on a corner lot will have a different design than most homes in the neighbourhoods making them more unique. On my street for instance, the homes on the corner have a more open-concept floor plan that you'll find in most of the other homes.
Do you think corner lots should be worth more or less than interior lots? Leave a comment.