One of the most overlooked aspects when buying a home is future property value. Property value can fluctuate with cosmetic flaws such as a bad paint job, weird landscaping, and an old interior, but those are features you can update! Unfortunately, other aspects also play a role in a home's property value that you cannot fix. Keep reading to learn what could affect the property value of your potential home:
Although it’s easy to assume people carefully inspect the location of their future home, that is not always true. Even if your home is within the proximity of high-performing schools, you may still have a low property value. Contrary to quality schools, other establishments such as the below can reduce the property's value:
- Funeral Home
- Shooting Range
- Homeless Shelter
- Power Plant
You must carefully inspect the location of your future home. If you fail to do so, there's a chance you will be blindsided.
I know, I know. It sounds outlandish to believe that someone who lives next to you could hurt the value of your home, but it’s true! Simply put, horrible neighbors hurt your home value! In an ABC 2020 interview [hyperlink here], a Florida woman’s neighbor disposed of deer carcasses in his yard, lit multiple fires, and tormented her every night. That’s why I urge you to research every property that interests you and ask questions! According to Barbara Corcoran, homeowners are responsible for telling homebuyers the truth about their neighbors. This required disclosure could prove detrimental once you are looking to sell. Save yourself the headache and financial burden of homes with nightmare neighbors. If you fail to do so, the property value will continue to plummet.
Lastly, keep an eye (or should I say an ear) out for the noise levels when you are touring a potential home. For example, if you are contemplating a home in a college town, be prepared for noise to negatively impact your property's value. I went to UNC-Chapel Hill, and although the city has a noise curfew, very few people obey the law as it is not enforced. Therefore, the majority of the homes close to campus are rentals to college students. Homeowners in Chapel Hill live on the outskirts of town to avoid both the noise and the impact it could have on their property value. All this to say, make sure you consider the location of the home in proximity to high noise level establishments.
Ultimately, pay close attention to every home you’re interested in purchasing! Ensure that anything that could potentially decrease the property value can be fixed!