Negative Affects On Home Value

Negative Affects On Home Value

The real estate market has been bouncing back with a boom. Like many of you have heard, it is currently a sellers’ market with inventory being at an all-time low. However as a homeowner have you considered what external conditions can affect your home negatively without you even realizing? Here are some of the biggest dangers to your home’s value.

Sinkholes – Rob Arnold a real estate investor whom has purchased over 30 sinkhole properties tells owners that if you’re home has damages due to a sink hole you can take of 30% of the asking price.

City dumps/Power plants – Researchers in California and Ohio found that homes near landfills or within a two mile radius of a power plant can expect home value to decrease up to 7%.

Nearby Hoarders – Joe Magdziarz, president of the Appraisal Institution states that having a nearby neighbor hoarder that fails to maintain their yard can pull your home value down 5 to 10%

Foreclosures – A study at Chicago Woodstock Institution found that homes that are within a 1/8 mile from a foreclosed home can expect to see a 0.9% drop in their own home

Noisy Neighbors – From loud neighbors to barking pets Appraisal Institute President Richard L. Borges states that homeowners can expect a 5 to 10% drop in their home value

Fracking – A team of Duke Economist and nonprofit research organization, Resources for the Future found that homeowners whom use ground water could lose up to 24% of their property value if the live within 1.25 miles of a shale gas well and the mere threat of fracking came up

Sex offenders – A study by American Economist Review found that homes located next to a register sex offenders decreased by up to 12%

Billboards – In Philadelphia urban planner Jonathan Snyder found that homes within 500 feet of “tacky” billboards were worth roughly $30,826 less

Schools – While there is no exact number associated with the quality of school and home valuation a 2010 study by Louis Federal Reserve found that buyers were willing to pay a substantially larger premium for homes located near high ranked schools especially high schools

Ryan M. Nguyen is a Broker Associate at Keller Williams. He is a part of Carr Peck & Associates which has been recognized locally and nationally as an expert in real estate. Driven by his passion for real estate he strives to show the world what his generation brings to the table. For more information feel free to contact him or call 303.828.8720 

Photo provided by Google, Content Provided by BusinessInsider.com


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Dated: October 28th 2014
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