Ask anybody involved in real estate – a buyer, seller, agent, anybody! – they’ll tell you that selling a property is quite the ordeal.
One of the biggest reasons why selling property is so difficult is that it all comes down to the details, which are in theory not easy to manage or handle (for anyone, really).
The details that mean the most to any given party part of a real estate transaction are those that can significantly alter the price of a property. In particular, there are five key factors regarding the conditions of a piece of property that can potentially lead to financial pitfalls in real estate.
1) Messy (Really Messy) Neighbors
You may consider your neighbors to be your friends – and rightfully so, they’re probably good people at heart. But if your neighbors are messy and treat their homes as such, that’s an issue that can seriously play a role in the pricing value of your home.
According to Joe Magdziarz, president of the Appraisal Institute and a real-estate appraiser with many years of experience, a property’s value can decrease by 5% to 10% if the neighboring persons in close proximity to that property can be characterized as hoarders. Same can be said about noisy neighbors, so make sure to watch out for those, too!
2) Poor Environmental Conditions
Not talking weather here, although that’s surely going to be a factor, especially when it comes to hurricane-prone regions. This is about the circumstances leading to unpredictable environmental volatility like fracking.
For instance, according to BusinessInsider, a team of Duke University economists and nonprofit-based researchers uncovered that Pennsylvania homeowners who used local groundwater for drinking purposes sadly sacrificed up to 24% of their property value if they lived within 1.25 miles of a shale gas well.
3) Horrendous Crime and Murder
Not that it’s something that’s wholly avoidable, but in some ways it’s important to do your research into who you’re letting into your home (and your time in watching out for sketchy folks in surrounding areas).
Reason being that a serious or violent crime, and of course a homicide, can affect the price of your home. On top of that, these kinds of issues can also impact an entire neighborhood. Apparently housing prices within a 0.2 mile stretch of a “murder house” take a 4.4 percent drop in the year after a homicide. Let’s just say it’d be good to have professional unattended death cleaners on your side for that!
4) Overwhelming Billboards
Some billboards are beautiful and commanding. Other billboards are somewhat overwhelming in a negative way.
Nonetheless, any billboard near a home can leave an impact on that home and the neighborhood that that home is a part of, so much so that there are real indications that if a home is within 500 feet of a billboard, that home might possibly be worth $30,826 less on average than other homes which are further way.
5) School Districts
Interestingly enough, the Brookings Institution has found that housing costs tend to be higher in areas where high-scoring schools are located. This makes sense considering that there is a correlation between better schools and higher costing real estate.
This fact alone should suggest that a poor school district can negatively impact the price of your home. This is something to consider as you think about the long-term real estate strategy for your home.
In conclusion, think about these factors as to not inadvertently lead to any financial pitfalls when selling your property. The future of your home is in your hands!