Things that impact a home’s value are a bit of a mystery to those not employed in the real estate or finance industry. Sure, some of them are obvious, such as the positive impact of living
3 Things that can Negatively Impact your Home
Things that impact a home’s value are a bit of a mystery to those not employed in the real estate or finance industry. Sure, some of them are obvious, such as the positive impact of living within a strong school district.
Others, though, aren’t quite so obvious. Let’s take a look at some negative events and conditions that can impact your home’s value.
- The Economy
It took the confluence of several events to create the perfect storm in the real estate market when the bubble burst. When all was said and done, homeowners in the U.S. lost over half the equity in their homes.
There really is no way to protect your equity if another bubble comes along. Thankfully, there’s no sign of one on the horizon.
- Underwater Homeowners
Speaking of the housing market crisis, the word “foreclosure” became one we all too often heard. It seemed that almost every block in every neighborhood had a foreclosed home.
A foreclosure on your street will bring down your home value. If that home is located within 250 feet of yours you will lose, on average, one percent of your home’s value, according to an MIT study.
Here again is a circumstance that you can’t prevent. Being patient until the market corrects is your best bet.
- Lousy Neighbors
Your worst nightmare, in more ways than one, is to have a registered sex offender move into the neighborhood. When this happens, homes nearby experience a 9 percent in value and spend an extra 10 days on the market compared to homes nearby without such a resident.
Even a neighbor who is merely guilty of allowing his landscaping to become overgrown can impact your home’s value by up to 10 percent, according to the president of the Appraisal Institute, Joe Magdziarz.
While it may seem like there are more negative impacts to home values than positive, you might be surprised to learn that isn’t necessarily true. Next time we’ll take a look at some of those surprising conditions that have a positive impact on home values.
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