9 Features You Don’t Want in Your Neighborhood
9 Features You Don’t Want in Your Neighborhood
source: realtor.com®
source: realtor.com®
9 Neighborhood Features That Hamper Values is the title of an article recently published on realtor.com®
According to the article there are “certain neighborhood features” near homes -like power plants and hospitals- that could drag down a home’s value and ultimately the selling price. In order help consumers and Realtors understand the dynamics of the housing market Realtor.com® recently identified which of those features could have the biggest impact. To reach a conclusion, realtor.com® analyzed home prices and appreciation rates in ZIP codes of the 100 largest metro areas across the country where a specific so-called “drag-me-down facility” – such as power plants or homeless shelter – was present. Then the research team calculated the potential discount by comparing the median home price of the ZIP codes with that facility with the median price for all homes in the same country.
Highlights of the study showed the following neighborhood features emerging as the ones that could potentially drag down home values by the greatest amounts:
- Bad school: -22.2% (translation: home owners near a bad school received 22.2 percent less than an average home in the same county could get)
- Strip club: -14.7%
- High renter concentration: -13.8%
- Homeless shelter: -12.7%
- Cemetery: -12.3%
- Funeral home: -6.5%
- Power plant: -5.3%
- Shooting range: -3.7%
- Hospital: -3.2%
The numbers are interesting but really need to be looked on a case-by-case basis when you decide to buy or sell. Obviously something smelly nearby affects values but in the ever changing world – some empty nester communities may find locating near a hospital is a value added feature. And schools have always been a plus for some neighborhoods which is why maintaining school districts with good scores and academics makes real estate money sense.
Bottom line when you buy a home or condo you’re also buying a neighborhood and due diligence is needed. Questions about resources for information about neighborhoods talk to your agent.
