Your Neighbors Can Affect Your Wealth

We have all heard of “the good neighbor policy.” However, in the current real estate market, with high demand and low inventory, this policy extends beyond letting your neighbor borrow a cup of milk every now and then.

According to the Appraisal Institute, your neighbors can affect your home value. In fact, according to the Institute, having a bad neighbor can negatively impact your home’s value by up to 10%.

What is a “bad neighbor?” According to the Appraisal Institute, these are the neighbor factors appraisers will use when valuing your home: annoying pets, unkempt yards, unpleasant odors, loud music, dangerous trees and limbs, and poorly maintained exteriors.

Other factors that could affect the value of your property are the property’s proximity to commercial facilities, such as power plants and funeral homes.

If you’re searching for a home to purchase, it is highly recommended that you visit the property at several different times of day, and different days of the week to really get a feel for the neighborhood. What looks good during the evening may be very different in daylight. Also, a neighborhood that is quiet on a Monday may have a very different vibe on a Saturday.

Remember, it's neighbors that make it a neighborhood!

Elizabeth Sorvillo is Marketing and Social Media Director for the La Jolla branch of PrimeLending. She is also a freelance web designer and marketing consultant. She can be reached at 917-294-7584.