We’ve talked about easements at length in the past, and they can be a great way for two parties to come to an agreement about how one person can legally access another property. The landowner retains rights to the property, but the easement agreement spells out how others can legally access the area.
Perhaps you have an agreement in place for how your neighbor can access your shared driveway, or you have an easement created to spell out how a utility company can access electrical equipment located on your property. These easements can be great for both parties, but they can also have an impact on your property’s resale value should you choose to sell the property down the road. We take a closer look at how the creation of an easement can help or hurt your property value.
Easements That Increase Your Property Value
Given the choice, most people would prefer that an easement agreement did not exist on a property they are considering buying. For example, you’d probably prefer that your neighbor didn’t need to use a shared driveway, or that utility workers didn’t need to have an agreement in place to service equipment on your property. However, not all easements negatively affect a property’s value. In some instances, the creation of an easement could actually pique the interest of prospective buyers and increase the property's value. A couple quick examples of easements that could positively impact a property’s value include:
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A conservation easement that guarantees that scenic landscapes or natural wonders on a property cannot be disturbed.
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A utility easement may be put in place to bring high-speed internet access to a property located in a remote area.
It all depends on individual preferences, but to say that easements always have a negative impact on a property’s value is false.
Easements That Decrease Your Property Value
That said, it does tend to be more common that the existence of an easement may be a bit of a turnoff to a potential buyer. You may have drafted an easement that allows your neighbor to access your property for hunting purposes, but the new owner may not wish for this agreement to remain in place after the sale. However, an easement agreement supersedes the sale of a property, meaning it will remain in place if that was written in the original agreement.
Another reason that a prospective buyer may not want to purchase a property with an existing easement is because the easement likely means greater traffic on the property, which will likely lead to the need for regular upkeep or maintenance. Obligations for maintenance costs will be determined in the easement agreement, but a prospective buyer may not like that they’ll eventually have additional costs associated with easement maintenance.
Finally, less control over who can access a property can be a turnoff for buyers. Knowing that someone else can legally access their land may not be something they want to deal with when purchasing property of their own, so this shared access could be a turnoff for some.
At Commercial Partners, we can assist with all your easement needs. Whether you want to establish an easement that protects your interests, or you want to frame the existence of an easement as a positive when you’re working to sell, we want to be your resource. We’ve helped countless property owners develop, modify and terminate easement agreements, and we can do the same for you. For more information, reach out to the team at Commercial Partners today at (612) 337-2470.