This can go either way. Some buyers would prefer a property without covenants, or as they are sometimes called, restrictions. They can build any type of home. A tiny home. Place a manufactured home, single or double-wide on the land perhaps. Build a storage shed, put a camper on it, have lots of animals, the list goes on. Covenants can prevent you from doing any of this, and more. They may require only site-built homes, no manufactured homes. They may require the home to have a minimum square footage. So, if you wish to build a 1,200 square foot home, and the covenants require a minimum of 1,400 square feet, you’re out of luck. They may require that you own no more than two dogs. If you have four, you’re out of luck. They may require that you can only have inground swimming pools installed, so if you would like an
above-ground pool, guess what? Out of luck.
Now the flip side of that coin is that if you have a neighbor that makes a mess out of their property, turns it into a junk yard, that will more than likely impact your property value. And not in a good way. What if they want to paint their home psychedelic purple and green with large polka dots? The eye sore may not bother you, but if you ever plan on selling, a buyer may think differently. You don’t typically find very nice homes next to purple and green homes. And where does it stop? What if they wish to breed animals? Will fifty roosters crowing at sunrise bother you? I think you get the drift.
The moral of the story is that you don’t know what a neighboring property is likely to do without any type of community restrictions. With restrictions you have a pretty good idea of what is not allowed. However, down the road, a future buyer may enjoy living in a community without restrictions so they can paint their home a shocking pink. Or be able to breed German Shepherds for sale. But you could also have a buyer that doesn’t want that. That wants nicely manicured lawns in conservative colors next to their property. So, depending on what a buyer is searching for, a property without covenants may be worth more to them than one with covenants. And it just as easily, can go the other way for a different buyer.
