If you are looking for the perfect house, you should look beyond the property lines. It turns out that having bad neighbors are more than just a nuisance to you. According to the Appraisal Institute there are some neighbors that could be dragging down your property value. There is a surprising array of potential threats to the value of your home that you may never have considered.
When you take pride in your property and like to keep things looking sharp, few things can be as frustrating as neighbor’s who do not share your pride in ownership. When the house that is down the block has a lawn that is overgrown, littered, and needs painting, but the owners do not seem to see the problem, the truth is the damage they are doing is more than just being an eyesore; especially for anyone trying to sell a home. A study by Virginia Tech shows that attention to landscaping can increase property value up to 11%
If your immediate neighborhood seems well kept, your home’s proximity to unsavory businesses could also affect your property value. A Berkeley study shows that living to close to many types of industrial businesses can significantly decrease the value of your home. Power plants can decrease value up to 7%, landfills up to 10%, and any type hazardous waste close-by can decrease a property’s value by up to 15%.
High foreclosure rates have hit virtually every real estate market across the country. Although in some cases, these homes can mean incredible affordability for a buyer. An MIT study shows that homes within 250 feet of a foreclosed property could see a decline in property values of 1% for each foreclosed property in the neighborhood.
Not all of the threats to your property value can be seen by driving the neighborhood. Especially for those who have children checking the registered sex offender list for the area you are thinking of living in is a good idea. It is also good information to know because it can affect the value of your home. Longwood University in Virginia states that the closer you live to a registered sex offender, the more your property will decrease in value. You could see drops in value of about 9% if your home is within 1/10 of a mile of a registered sex offender, and you can expect it to take an average of 10% longer to sell the home.
With so many affordable properties on the market right now, many people are considering taking the leap and buying a home. If you are in the market for a home, remember to look beyond your four walls to see how your neighbors and your neighborhood could affect your home value.
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About David Goldstein — David Goldstein is an Owner and Founding Partner of Express Schools, LLC. which operates online education providers Real Estate Express, Insurance License Express and License Tutor. Follow him on Twitter.