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

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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.

Episode Transcript

Speaker 1 (00:01):
Welcome to the Real Estate News Radio Show with your
friend in real estate, rowenaPatton, and today we're talking
about road maintenanceagreements and how they can
affect your value.
I know it sounds boring, butit's really, really important.
So before we dive in today, aquick reminder you can catch all
of our past episodes atrealestatenewsradiocom, and if

(00:23):
you're listening and you knowsomeone who lives on a private
road without a road maintenanceagreement they're pretty common
or they're just trying to sell aproperty without one, please
share these episodes with them.
Just head torealestatenewsradiocom, click on
podcasts and you'll find all ofour shows there.
Or you can just look for RealEstate News Radio with Rowena

(00:43):
Patton.
Anywhere you listen to podcastsand you'll find us right there.
Youtube, apple, wherever you'relooking, you'll find us right
there.
Now on to today's topic.
You know what I ran into justyesterday.
I was out looking at a propertyand you turn off the main road
thinking you're on the way tosee this beautiful home or maybe
a nice piece of land, and then,bam, you hit a road that looks

(01:06):
like a war zone Huge potholes,not little bumps, I mean holes
big enough to swallow your tyresand on one side the road had
actually fallen away.
You're hugging the edge just toget through.
And this road it wasn't justserving one house.
At the end of a long drive, ohno, this was the only access

(01:26):
road to about 20 homes.
Plus, there were bare lots forsale behind there as well.
Here's the truth Half of yourpotential buyers they're going
to turn around right there orthey'll just drive by.
They'll never see the property.
They get out of the car, lookat the road and say no.
And here's something a lot ofpeople don't think about.

(01:47):
Even if someone is brave enoughto drive through the potholes
and they don't mind the mess, ifthey need a mortgage, it's
going to be a problem.
Why?
Because some lenders actuallyrequire it.
Many lenders require it.
Without a road maintenanceagreement, that lender is going
to hesitate at the very least orflat out refuse.

(02:08):
If there are potholes, there'sa 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, thebank doesn't like it and most
often will refuse to fund it.
Now some of the neighbours toldme they actually like the
potholes because it slows peopledown and keeps strangers from

(02:30):
driving through theirneighbourhood.
That might sound good in theory, but you know what it really
does.
It costs you money when it'stime to sell.
Here's the good news A roadmaintenance agreement is simple
and inexpensive.
It's not complicated legalese.
You can have an attorney drawon it for $200-$300.

(02:51):
Here's the kicker it doesn'teven have to involve money every
year.
At the very least, it's a pieceof paper where everybody on
that road agrees If somethinggoes wrong a big washout, a tree
falls, winter ice makes itimpassable we'll get together
and fix it.
That's it.
That one document can open thedoor to so many more buyers.

(03:13):
Now, if you and your neighborsdo decide to throw a little
money into it even $100 a yearper household, even 50 bucks now
you've really got something.
That fund means.
When a storm blows through orthe road washes out, you've
already got the resources to fixit.
And think about the weather Inthe winter when snow and ice hit

(03:34):
.
Having that road maintenanceagreement gives you at least
limited funds to clear the road.
I hear it all the time oh, bobdown the street has a tractor
and he clears the road for us.
Well, that's great, until Bobmoves, or Bob isn't around
anymore or gets tired of beingthe only one clearing the road.
And trust me, it happens, I'veseen it and I promise you the

(03:55):
bank does not want to rely onBob to keep their asset
accessible.
They want to see a plan inwriting and the cost to set this
up Usually when the neighbourspull together it ends up being
10 bucks, 20 bucks, 30 bucks apiece Just a small amount to get
that document written.
Small investment and it has areally big impact.

(04:16):
Here's why it matters.
It makes your propertymarketable, whether it's bare
land or a house.
It makes it possible for buyersto get a mortgage, which means
a much larger pool of people whocan buy your property and that
want to buy your property.
Let's be honest and practicallyspeaking, it means you won't be
stranded, because if that roadwashes out, ice is over or a

(04:40):
tree blocks the way and youdon't have an agreement, you're
on your own.
I'll tell you this most agents,me included, will advise their
buyers to make sure there's aroad maintenance agreement, even
if they're paying cash.
Why?
Because one day they're goingto sell that home or that piece
of land.
Without it, they'll face thesame problem a smaller buyer

(05:01):
pool and a lower sale price.
And let's not forget theday-to-day reality.
If you're relying on a privateroad, that road is your lifeline
.
Emergency services, deliveries,family coming to visit
Everything depends on being ableto get down that road.
So here's my advice If you'relooking at buying a home or land

(05:21):
on a private road, ask thequestion is there a road
maintenance agreement in place?
And if you already live on one,talk to your neighbors.
It's inexpensive, it's quickand it protects every single one
of you.
I promise you, that littledocument can make a huge
difference when it comes time tosell and it makes life a whole

(05:41):
lot easier while you live there.
And don't forgetrealestatenewsradiocom.
You can click contact there ifyou want some more information
about this.
And before I wrap up, if youknow someone living on a
property with no roadmaintenance agreement or they're
trying to sell without one,please share this episode.
Go to realestatenewsradiocom,click on podcasts.

(06:04):
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Easy share links.
It's all free.

(06:25):
There's no subscriptions oranything else.
This is your friend in realestate, rowena Patton, and
you're listening to the realestate news radio show.
You'll also find all theepisodes guess where?
Realestatenewsradiocom.
I also have all Powerhouse,which is a national team.

(06:47):
Now, If you're looking to getinto real estate or you want to
find an agent anywhere in thecountry, give us a call
828-333-4483.