Having aggravating or tasteless neighbors can be more than an inconvenience – it can actually decrease the value of your home – at least according to one study. A report shows that homes located close to “bad taste” homes can be worth up to $10,000 less as a result of potential buyers not liking the looks of the neighbors.
In fact, 92% of real estate agents surveyed said that a bad neighbor can have a significant negative impact on the value of homes around it. The biggest issues are noisy or unfriendly neighbors, or neighboring homes with overgrown yards or gardens.
One study took a wide variety of factors into consideration, including having overgrown gardens, items on the lawn, and poor upkeep, and the results were staggering: bad neighbors can negatively impact the price of a home by more than 8%.
Another common reasons real estate agents say buyers are put off by a neighboring home is buildings or fixtures that are a garish or unsightly color. Examples include stone cladding, faux beams, and even ugly furnishings and curtains. These issues can negatively impact the value of a home by as much as 4.8%. Then there’s the do-it-yourself jobs gone wrong, or extensions that are noticeably not a part of the original structure. These issues can take 7% off the value of the properties adjoining it.
Then again, this isn’t true for everyone. Real estate agents say they’re often asked “who are the neighbors?” when showing a home and some potential buyers may be turned off to learn that the neighbor is very extroverted, or that they painted their house an unusual color – but some actually like it. There’s really no telling.
The good news is that there are a few things a homeowner can do when they’re trying to sell. First, they can simply ask their neighbors to clean up the offending issue or offer to do it themselves. While this can be an awkward conversation to have, it’s much easier if you can simply blame it on your real estate agent. If the situation is handled tactfully and kindly, the results may be better than you think.
For example, you could buy your neighbors some dazzling new curtains or offer to help them sort out the items in their yard. Remember that you’ll be moving away soon enough and one uncomfortable conversation may very well be worth $10,000+.