It’s true – neighbors can drastically affect your property value. The phrase location, location, location has played a role in real estate for ages.
Home lots with a view, a home on the waterfront, a corner lot that offers a large yard; these are location factors that typically fall into the pro column when buying a home.
But what about location negatives? A neighbor swaying property value may seem unlikely, but it can happen.
Many factors that are beyond your control as a homeowner can have an impact on your property’s value. It may not be fair, but a home is not only judged by its appearance. Often a home also is judged by the appearance of the houses and properties that are nearby.
What Hurts Property Value?
In today’s real estate market, it truly can be a case of it’s not you, it’s them. Neighbors bringing down property value happens every day across all regions, from middle-class suburban subdivisions to urban streets in cities of all sizes.
Four of the most common factors that contribute to property value decreases include neighboring properties that:
- Are in foreclosure
- Suffer from neglect
- Contribute to area noise pollution
- Have residents/frequent visitors with criminal backgrounds
Neighbor in Foreclosure
A declining neighborhood often is a major reason home values fall. However, even on a block with well-tended homes, a property that’s in foreclosure can affect the others.
According to an article from the New York Times, a study concluded that homeowners suffered as much as a 1.3 percent drop in property value when they lived within 300- to 500-feet of home in foreclosure. Foreclosure can take its toll on the homeowner, the property, and the neighborhood.
On average, homes in foreclosure tend to be neglected by their owners. This neglect creates a physical eyesore in the neighborhood, which can affect your property.
If you’re looking to sell your home, beware. Buyers often drive-by the home for sale and not only look at the listed property, but the neighboring properties as well. One that’s in foreclosure and looking neglected can turn off a prospective buyer.
If you’re a home seller in this situation, HomeGo can help. We buy homes in all types of neighborhoods and if your property is next to a foreclosure, it’s okay.
Neighbor’s Home is an Eyesore
A cookie-cutter neighborhood with rows of white fences and matching manicured lawns may not be your dream, but the home values typically hold steady because everyone cares for their property. However, when one home becomes an eyesore, everyone can be affected.
What kinds of eyesores hurt property value? Usually, the biggest detractors include:
- Unkempt yard: overgrown lawn, no lawn, and yard destroyed by pets
- Garish colors that don’t fit the neighborhood
- Peeling paint, broken windows, boarded windows, and graffiti
- Signs of hoarding
- Old cars, junk, and trash visible in the yard(s)
Noise pollution of all types can affect property value. Homebuyers may tell their real estate agent they don’t want to live in a neighborhood near railroad tracks, a busy intersection, or too close to an industrial or commercial zoned area.
But what about the noise pollution generated by an inconsiderate neighbor? Loud music at all hours and regular parties that spill out of the house and into the yard/porch are just the tip of the iceberg.
If your neighbor runs power tools regularly in their garage or has teens that hang out in the driveway until late, this is noise pollution too. Bouncing basketballs after 10 p.m. and incessantly barking dogs also pose problems. Noisy neighbors can definitely make your home for sale seem less desirable to a prospective buyer.
Neighbor is a Criminal
Homebuyers can check out many aspects of a neighborhood through various sources before they even step foot inside a house to see if it suits their needs. Many buyers first pick a neighborhood, and then look to see if any homes are for sale.
If the prospective buyers check for residents registered as a sex offender, they may choose to look for a different neighborhood—even if your house for sale is their dream home. Because criminal backgrounds are often public information, it’s become easier for buyers to perform their own background checks.
This can hurt your property value. In addition, if a potential buyer drives through the neighborhood and sees any suspicious or criminal activity, they’re probably going to keep on driving. Buyers with kids and/or senior adults typically list safety as a priority when choosing a home and neighborhood.
Neighbor Problems? HomeGo Can Help
Yes, a neighbor affecting your property value is more common than you might think. While there is little you can do to “fix” bad neighbors when you’re trying to sell your home, HomeGo can be a solution.
We know that homebuyers research neighborhoods and that they’re turned off by homes in foreclosure, neglected properties, local noise pollution, and criminal activity. If a neighbor is bringing down your property value and has stalled the sale of your home, look to HomeGo. We buy houses of all sizes, conditions, and ones that even come with bad neighbors. Bad neighbors are bad news for home sellers, but HomeGo is here to help.