Almost anything that impacts the value of your neighbors' homes will affect your property as well. Here is a look at four of the most common ways that a neighbor could be negatively affecting the value of your own home without you even realizing it.
Foreclosure
A 2009 study cited by the New York Times revealed that a single foreclosure can devastate the value of nearby homes. Depending on the local real estate market, each foreclosure within 300 feet of your home could reduce the value of your property by as much as 1.5 percent. These problems are often compounded when HOAs fall apart due to a lack of funding from delinquent neighbors.
No Curb Appeal
Most homeowners realize that their curb appeal can have a huge impact on the value of their property, but not many know that the state of their neighbor's yard can affect them as well. Visible signs of damage or disrepair will drive out potential buyers and drastically reduce your home's value. If the home in question is your direct neighbor, then it can have an even bigger impact on the value of your property.
Legal Troubles
In the digital era, potential buyers can do quite a bit of research on the community they are considering moving to. That includes taking a closer look at any legal troubles the neighbors might be dealing with. From the moment that a neighbor becomes a registered offender, they will most likely be placed on a public list that everyone has access to. Even a single offender in your neighborhood could drop your home's value by thousands of dollars.
Ongoing Disputes
No one wants to deal with a neighbor who is known for being a nuisance. Common issues such as continuously parking in front of your home or throwing raucous parties will be a red flag for real estate agents and buyers. While they might not notice these issues immediately, you will not be able to hide an inconsiderate neighbor forever. At some point, those minor altercations and arguments can impact the value of all nearby homes.
If you have recently noticed any of these issues, then it might be time to contact a company such as Berkshire Hathaway Home Services PenFed Realty to explore your options for relocating. Your home is a major investment, and no one deserves to have neighbors that drive down the value of all local real estate.
