It’s no secret that your neighbors and the quality of your neighbors can affect your quality of life. But what you may not know is that it can also affect the value of your home. Having bad neighbors can lower the value of your home while having good neighbors can increase it.
But how does this work? How do your neighbors affect your property value?
There are a few ways that this happens:
Good Neighbors: Your neighbors can have a positive effect on your home’s curb appeal. If they keep their yards neat and tidy, it will make your yard look better by comparison. This can be especially important if you’re trying to sell your home.
Bad Neighbors: On the other hand, if your neighbors have neglected yards, it can drag down the value of your home. No one wants to buy a home that’s surrounded by a jungle!
Good Neighbors: If your neighbors are close by, it can be seen as a bonus. People like to know their neighbors, and having good ones next door can make living in your home more pleasant.
Bad Neighbors: On the flip side, if your neighbors are too close for comfort, it can lower the value of your home. No one wants to live next door to a party house or someone who is constantly fighting with their spouse.
Good Neighbors: If your neighbors are quiet, it can be a big selling point for your home. No one wants to hear their neighborhoods talking, yelling or playing loud music into all hours of the night.
Bad Neighbors: On the other hand, if your neighbors are constantly making noise, it can be a big turnoff for potential buyers, especially if they are making a lot of noise during a showing!
Good Neighbors: If your neighbors keep their homes in good repair, it will reflect well on your home. People will assume that if your neighbors take good care of their homes, you must take good care of yours as well.
Bad Neighbors: Alternatively, if your neighbors don’t take care of their homes, it will reflect poorly on yours. People will assume that if your neighbors don’t take care of their homes, you probably don’t either.
Aggressive and/or Loud Pets
Good Neighbors: Pets can bring a lot of joy to neighbors and neighborhoods, especially if they are well-trained and friendly. Many people do not mind living next door to dogs, cats or other domesticated animals, as long as they are not disruptive.
Bad Neighbors: Aggressive and/or loud pets, however, can be a huge problem for neighbors. If your neighbor’s dog is constantly barking or their cat is clawing up everyone’s outdoor furniture, it can create a lot of tension in the neighborhood. Having aggressive pets can also be a safety concern, which may put buyers on alert if they witness this behavior.
Good Neighbors: This point is rather self-explanatory. Good neighbors are ones that are not involved in or associated with any criminal activity.
Bad Neighbors: It is estimated that having a registered criminal or one that is involved in criminal activity can lower your home’s value by at least 10%. While this is probably not a surprising statistic, no homeowner wants to see the value of their property decrease based on the reputation or activity of others.
Good Neighbors: If your neighbors are financially stable, it can be seen as a good thing for your home value. People will feel more comfortable buying a home if they know that the people living next door have enough money to take care of it.
Bad Neighbors: If your neighbors are having financial troubles, and this fact becomes evident by the loss of a home to foreclosure, this could reflect poorly on the community as a whole. Though each individual situation is unique, and many times unfortunate circumstances are to blame, neighbors in financial distress can make a neighborhood seem less desirable.
Generally speaking, good neighbors are ones that are friendly without being overbearing, take care of their homes and yards and don’t cause any trouble. If you have good neighbors, it is likely that they are also contributing to the overall value of your home!
So, if you are thinking of purchasing a home that you might sell later, first you need to find out the secrets of identifying the perfect neighborhood. On the other hand, if you are thinking of selling a house that you have already bought and living in, don’t forget to give a friendly wave to your neighbors whenever you see them around!