The Good, the Bad and The Ugly About Neighbors 

The Good, the Bad and The Ugly About NeighborsBad neighbors are no laughing matter.  Whether you're living minutes from a land fill, within close proximity of a registered sex offender or living beside the neighbor with an eye-sore-of-a-yard, your home values can be reduced by as much as 15% when you find yourself amidst 'bad' neighbors.

How ‘bad’ is that bad neighbor and what exacly defines a 'bad' neighbor?  Definitions vary by person and by area but, most real estate professionals believe that a bad neighbor is simply one who has virtually no consideration for the rest of the neighborhood.

From poor exterior maintenance of the home (landscaping, painting, roof, and/or general upkeep) to one who hosts loud parties or owns unleased or noisy dogs, a bad neighbor may not seem all that bad when one considers the business or government entities, whose very existence can and will most likely de-value your property.

Let's discuss the 'government entities' today.  Just how much can these bad neighbors reduce the value of your property?  Who are these 'bad neighbors' that can have such a detrimental effect on your home's value?

  • STOP! Do Your Due Diligence Before Buying!Power plants located within two miles of your home can reduce your home's value by 4-7%, according to a study from the University of California at Berkeley.  Check for addresses of nuclear power plants in your area or view clickable state information.
  • Sex offenders living within 1/10 of a mile from your home can reduce your values by 9% and take approximately 10% longer to sell, according to a study from Longwood University's College of Business & Economics.  How do you find out if there is a registered sex offender near you?  Visit the government's National Sex Offender public website.
     
  • Living within 2 miles of a Superfund site (landfill), according to Robert A. Simons, an urban planning professor at Cleveland State University, your home’s value could decline as much as 15%.  To locate landfills in America, visit ZeroWasteAmerica.org.
  • Foreclosed homes within 250 feet of your home can be the single largest factor affecting the local home values.  MIT (Massachusetts Institute of Technology) concluded in a recent study, a neighbor’s foreclosed home can reduce your value by an average of 27%.

What can you do about your bad neighbors?   Power plant locations, nearby sex offenders and landfill locations are 'bad neighbors' that you can do very little about unless the law has been broken by these entities.  However, as a home buyer, you can do your due diligence; investigate your neighbors prior to your purchase.  If you're already a homeowner, your options are limited.   You can file a grievance with your local government, requesting the 'bad neighbor' be reviewed. 

The best 'offense' is a good 'defense' so, be sure to perform your due diligence prior to purchasing a home.  Check the sites listed above for sex offenders, landfills and power plants.   Also have your REALTOR® calculate the ratio of foreclosed homes in the community compared to other communities.  Yes, you may be getting a fantastic 'deal' on a foreclosed home but, your foreclosure purchase is going to affect your neighbor's sale and the snowballing will continue to de-value the homes in the community in general, including your own new home.  Buyer Beware:  Your 'great deal' may not be as good as you thought!

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