Whether you want to purchase or sell a home, many factors can affect the property’s value now and in the future. For example, when the schools in a neighborhood fail, nearby property values plummet.
Buyers need this information to ensure they avoid a property at risk of suffering depreciation. Sellers need it to understand and address why their home isn’t getting any interest from buyers.
How can neighbors lower property value?
Have you ever lived near someone that threw crazy parties every weekend with loud music blasting until sunrise? You probably couldn’t wait to move to a quieter neighborhood. Unfortunately, unwanted neighbor behaviors have a huge impact on the value of nearby properties. Here are four more examples to consider.
- Too much clutter. When neighborhood yards contain old refrigerators or rundown vehicles, it pulls down the value of neighboring properties.
- Poor or absent landscaping. The same is true when adjacent properties lack the basics of landscaping (regular mowing, hedge trimming, etc.).
- Criminal neighbors. The savvy home buyer can easily find out when convicted criminals populate specific areas, potentially lowering neighborhood property value.
- High crime rate. Neighborhoods that receive a lot of police assistance (robberies, assaults, etc.) usually experience significant declines in real estate value.
Buyers, pay attention to neighboring properties and investigate the crime rate before you buy a home. If you plan to sell the property after living there for a while, your due diligence helps you avoid losing money in a future transaction.
Sellers, it is equally vital to do some research before listing your property. Once you understand the problems plaguing your neighborhood, address them as best you can to improve your home’s value and sell it faster.
We also recommend learning more about residential real estate closings and transactions under Connecticut law.