How Do Neighbors Affect Your Home Value?
Of all the things that have the potential to impact a home’s value, few people are quick to mention the neighbors. Though you might not even consider the neighbors when bidding on a home, the habits of these individuals really do influence the value of your home. Unfortunately, you cannot do much to gauge the integrity or civility of potential neighbors until you actually spend time with them. However, those who make an effort to engage the neighbors in discussion when checking out a home for sale will have a general sense of what these people are like. In some situations, this limited knowledge can help bidders get an idea of whether those living adjacent to the property will eventually reduce its value.
The worst case scenario is loud neighbors on all three sides. Barking dogs, loud music, bouncing basketballs and pool parties will create noise pollution that has the potential to drive you insane. Adding salt to the wound is the fact that this noise pollution will drive down the price of your home as well as others in the vicinity of your loud neighbors.
Some neighbors simply refuse to clean up their yard. An unkempt yard will be an eyesore. More importantly, messy neighbors will reduce your home’s value at the time of appraisal. Sadly, the surrounding conditions that are completely out of your control greatly influence your home’s value. Whether the issue is overgrown grass, an odor emanating from a neighbor’s property or noise pollution, problematic neighbors have the potential to reduce your home’s value by a significant amount. If your neighbor has neglected leaves, grass clippings, unmowed grass, weeds or left another part of the property messy for an extended period of time, consider speaking up prior to putting your home up for sale.
Neighborhood Sex Offenders
The general public can now look up the location of registered sex offenders. If you live next to or near a registered sex offender, few, if any, parents will be willing to buy your home. Do not purchase a home near a sex offender unless you plan on staying at the property for upwards of a decade or longer. Even if you find an interested buyer who does not have kids, selling the house could prove difficult simply because most people feel uneasy about living next to sex offenders.
The Potential for Foreclosures
If one or both of your neighbors end up in foreclosure, the value of your home will decrease. Foreclosed homes are almost always neglected to a significant degree. It will take a while for the home to be remodeled. In fact, most foreclosed homes do not even have electricity or water connected at the time of the sale. It could take upwards of a couple years to turn an ugly, vacant foreclosed home into a habitable structure that elevates or at least stabilizes neighborhood home values.
Neighbors who Hoard
If you end up with hoarders as neighbors, their overflow will inevitably reach the backyard and possibly even the front yard. If you spot items piling up in the neighbor’s yard, think twice before making a bid on the property. Otherwise, you might find it difficult to sell the property when the time comes to move on as no one wants to move in next door to hoarders.