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
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
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Author:Jason Peck Phone: 720-446-6301 Dated: October 28th 2014 Views: 823 About Jason: ...
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"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!