7 Neighborhood Threats to NJ Real Estate Home Values

How who or what is next door to your home can negatively impact NJ real estate prices

 

Bad neighbors can be a serious problem, according to NJ real estate agents. Undesirable things such as a garbage dump, messy yard, nearby sex offender, or a funeral home can be responsible for reducing the value of surrounding homes by as much as 15%. A “bad” neighbor can be described as any home or business that turns people off. An example of this can be a homeowner that neglects the exterior of their home such as painting, landscaping, or the roof. Also, a bad neighbor may have incessant and loud parties often, unruly barking dogs, or constant visitors taking up parking spaces. Below are 7 surprising neighbors that can reduce the value of your home.

Foreclosed Homes

Perhaps the biggest single factor that drives nearby home values down is a foreclosure. A recent study found that the value of homes within 250 feet of a foreclosed property will decrease by 1% per foreclosure, on average.

Landfills

It has been proven that a subdivision within close proximity to a landfill loses anywhere from 6% to 10% in value compared with a subdivision that is not near a landfill when all else is considered equal such as income and home size. In addition, living within 2 miles of a Superfund site could bring down your NJ real estate value up to 15%.

Sex Offenders

Being located near a registered sex offender is one of the biggest contributors to negative NJ real estate values, and the closer you live to a sex offender, the more your home will depreciate. According to research, the presence of a registered sex offender living within one-tenth of a mile reduces home values by about 9%, and these same homes can take as much as 10% longer to sell than homes not located near registered sex offenders.

Power Plants

Data regarding the location of power plants near homes points toward a negative impact on home values. A study conducted by the University of California at Berkeley shows that home values within 2 miles of a power plant can be brought down 4% and 7%.

Unkempt Landscaping

First impressions are lasting and mean everything to a potential buyer. A neat and clean home that is well-maintained will get noticed quicker and increase the likelihood of a sale. Up to a 10% increase in the NJ real estate value can be achieved in a home with great curb appeal.

Delinquent Bill Payers

One unexpected way NJ real estate neighborhood values can be brought down is by residents failing to pay their mortgages or monthly maintenance fees, especially in communities comprised of condos or townhomes.

Closed Schools

On occasion, neighborhood issues can be the result of an action taken by the town government. An example of this is when a struggling town chooses to close the doors of one of its schools. This can bring down home values. According to the National Association of Realtors, 75% of home shoppers say the quality and availability of schools in the neighborhood is either “somewhat important” or “very important.”

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.