Why Your Road Maintenance Agreement Could Make or Break Your Property Value

Potholes on your private road? That seemingly minor issue could cost you tens of thousands when selling your home. Welcome to an eye-opening exploration of how road maintenance agreements impact property values in ways most homeowners never consider until it's too late.

When potential buyers encounter a neglected private road, nearly half will turn around without ever seeing the property. Those brave enough to navigate the obstacle course face another hurdle: mortgage lenders often refuse to finance properties without formal road maintenance agreements. This perfect storm drastically reduces your buyer pool and drives down your selling price.

The solution is surprisingly simple and affordable. For just $200-300, an attorney can draft an agreement that protects everyone on your road. The document doesn't necessarily require significant financial commitments—at minimum, it's just a written plan for handling emergencies. But even modest contributions of $50-100 annually per household create a maintenance fund that ensures your road remains passable during storms, snow, or other adverse conditions.

Beyond the financial implications, proper road maintenance directly affects your quality of life. Emergency services, deliveries, and visitors all depend on reliable access to your property. Informal arrangements like relying on "neighbor Bob with a tractor" create vulnerability when circumstances change. A formal agreement provides security and peace of mind for current living and future resale.

Don't let your property value suffer from this easily-fixed issue. Whether you currently live on a private road or are considering purchasing property on one, understanding road maintenance agreements is essential for protecting your investment. Share this valuable information with neighbors and friends who might benefit—because sometimes the path to higher property values starts with the actual path to your front door.

Chapters

• 0:00 Introduction to Road Maintenance Agreements
• 1:24 How Poor Roads Affect Property Value
• 2:36 Creating a Simple, Affordable Agreement
• 3:57 Why Agreements Matter for Everyone
• 6:17 Contact Information and Episode Closing

Transcript

Speaker 1: 0:18

Welcome to the Real Estate News Radio Show with your friend in real estate, rowena Patton, and today we're talking about road maintenance agreements and how they can affect your value. I know it sounds boring, but it's really, really important. So before we dive in today, a quick reminder you can catch all of our past episodes at realestatenewsradiocom, and if you're listening and you know someone who lives on a private road without a road maintenance agreement they're pretty common or they're just trying to sell a property without one, please share these episodes with them. Just head to realestatenewsradiocom, click on podcasts and you'll find all of our shows there. Or you can just look for Real Estate News Radio with Rowena Patton. Anywhere you listen to podcasts and you'll find us right there. Youtube, apple, wherever you're looking, you'll find us right there.

Speaker 1: 1:08

Now on to today's topic. You know what I ran into just yesterday. I was out looking at a property and you turn off the main road thinking you're on the way to see this beautiful home or maybe a nice piece of land, and then, bam, you hit a road that looks like a war zone Huge potholes, not little bumps, I mean holes big enough to swallow your tyres and on one side the road had actually fallen away. You're hugging the edge just to get through. And this road it wasn't just serving one house. At the end of a long drive, oh no, this was the only access road to about 20 homes. Plus, there were bare lots for sale behind there as well. Here's the truth Half of your potential buyers they're going to turn around right there or they'll just drive by. They'll never see the property. They get out of the car, look at the road and say no. And here's something a lot of people don't think about. Even if someone is brave enough to drive through the potholes and they don't mind the mess, if they need a mortgage, it's going to be a problem. Why? Because some lenders actually require it. Many lenders require it. Without a road maintenance agreement, that lender is going to hesitate at the very least or flat out refuse. If there are potholes, there's a good chance. There's no agreement in place. Honestly, even without potholes, if there's no agreement in place, it's a problem. When there's no agreement, the bank doesn't like it and most often will refuse to fund it. Now some of the neighbours told me they actually like the potholes because it slows people down and keeps strangers from driving through their neighbourhood. That might sound good in theory, but you know what it really does. It costs you money when it's time to sell.

Speaker 1: 2:55

Here's the good news A road maintenance agreement is simple and inexpensive. It's not complicated legalese. You can have an attorney draw on it for $200-$300. Here's the kicker it doesn't even have to involve money every year. At the very least, it's a piece of paper where everybody on that road agrees If something goes wrong a big washout, a tree falls, winter ice makes it impassable we'll get together and fix it. That's it. That one document can open the door to so many more buyers. Now, if you and your neighbors do decide to throw a little money into it even $100 a year per household, even 50 bucks now you've really got something. That fund means. When a storm blows through or the road washes out, you've already got the resources to fix it. And think about the weather In the winter when snow and ice hit. Having that road maintenance agreement gives you at least limited funds to clear the road. I hear it all the time oh, bob down the street has a tractor and he clears the road for us. Well, that's great, until Bob moves, or Bob isn't around anymore or gets tired of being the only one clearing the road. And trust me, it happens, I've seen it and I promise you the bank does not want to rely on Bob to keep their asset accessible. They want to see a plan in writing and the cost to set this up Usually when the neighbours pull together it ends up being 10 bucks, 20 bucks, 30 bucks a piece Just a small amount to get that document written.

Speaker 1: 4:29

Small investment and it has a really big impact. Here's why it matters. It makes your property marketable, whether it's bare land or a house. It makes it possible for buyers to get a mortgage, which means a much larger pool of people who can buy your property and that want to buy your property. Let's be honest and practically speaking, it means you won't be stranded, because if that road washes out, ice is over or a tree blocks the way and you don't have an agreement, you're on your own.

Speaker 1: 5:01

I'll tell you this most agents, me included, will advise their buyers to make sure there's a road maintenance agreement, even if they're paying cash. Why? Because one day they're going to sell that home or that piece of land. Without it, they'll face the same problem a smaller buyer pool and a lower sale price. And let's not forget the day-to-day reality. If you're relying on a private road, that road is your lifeline. Emergency services, deliveries, family coming to visit Everything depends on being able to get down that road. So here's my advice If you're looking at buying a home or land on a private road, ask the question is there a road maintenance agreement in place? And if you already live on one, talk to your neighbors. It's inexpensive, it's quick and it protects every single one of you. I promise you, that little document can make a huge difference when it comes time to sell and it makes life a whole lot easier while you live there.

Speaker 1: 6:01

And don't forget realestatenewsradiocom. You can click contact there if you want some more information about this. And before I wrap up, if you know someone living on a property with no road maintenance agreement or they're trying to sell without one, please share this episode. Go to realestatenewsradiocom, click on podcasts. Go to realestatenewsradiocom, click on podcasts and you'll find all of our episodes ready to send along. And, of course, if you listen to podcasts already youtube, apple, google, everybody's got this podcast you'll find all of our episodes ready to send along at realestatenewsradiocom. Just click on podcasts. All the links are there. Easy share links. It's all free. There's no subscriptions or anything else. This is your friend in real estate, rowena Patton, and you're listening to the real estate news radio show. You'll also find all the episodes guess where? Realestatenewsradiocom. I also have all Powerhouse, which is a national team. Now, If you're looking to get into real estate or you want to find an agent anywhere in the country, give us a call 828-333-4483.