Obviously, where you live will have an effect on the value of your home. If you live in a crime-ridden, rundown neighborhood, your home will never bring the price it would in a nicer location. This is not news; it is a fact of life. However, there are a few unexpected ways a neighborhood can raise or lower the price you can expect from your home when you sell.
1. The Price Paid for Other Neighborhood Homes
The values of other homes in the neighborhood have an effect on the price of your home, as expected. However, one would think that the assessed value would be the determining factor. In reality, it is the price that is paid for other neighborhood houses that makes the biggest difference.
Suppose a home has an assessed value of 200,000. One seller may find a more knowledgeable Realtor to sell the home. She may have better negotiating skills. She might also be more patient, waiting for the buyer with the deepest pockets. The actual selling price of this one home will make a difference in the home values around the neighborhood, regardless of the assessed value.
2. Cleanliness of the Neighborhood
Whether your neighborhood is clean or not changes the property values. When two identical houses in otherwise comparable neighborhoods, the cleanliness factor makes a difference. It is not enough to clean up your home and yard when it is time to sell. A neighborhood cleanup project can help you raise the value of your home even more.
3. Ages of Neighbors
The ages of the people in your neighborhood could limit the number of potential buyers for your home. People who want a peaceful, quiet life may pass on your home if there are too many rambunctious children in the neighborhood. Young buyers may not think it is fashionable to live in a neighborhood with too many elderly people. Others may like a diverse group of neighbors. Each of these groups will see the value of your home differently.
4. Neighborhood Organizations
In nearly every city, there are neighborhoods that are known for community involvement. This involvement may include neighborhood watches, block parties, charitable functions and other activities that are attractive to potential buyers. A neighborhood with an active organization may have increased home values.
5. Foreclosure Rates
You might not think your neighbor‚Äôs financial position is any of your business. If you want to sell your home, you may be absolutely wrong. If neighbors are facing job losses or high medical bills, they may be headed for foreclosure. The NY Times reported that homes within 300-500 feet of a foreclosed property saw significant decreases in home values.
Your neighborhood is certainly not the only yardstick for the value of your home. However, it is important not to ignore the effect. There may be actions you could take within your neighborhood to mitigate negative factors such as cleanliness. If you cannot change the problems, at least you can be aware of them in order to present your home in the best possible light.