The Pros and Cons of Co-Buying a Home With Friends or Family
It's the holidays and as families come together, dinner table discussions are including purchasing homes as a family, whether as a primary dwelling or vacation home.
Your home might be immaculate, but that doesn't mean the value can only increase.
You might have a good idea about your home's value. But then again, you might be surprised. Property values don't automatically increase over time. And certain elements that fall outside your property line could be responsible for a dip in yours.
Here are a few reasons to have a property valuation by eppraisal and learn where your home's value stands:
Messy Neighbors and Unkempt Homes Nearby
Bad neighbors are the bane of many communities. Some of them are hoarders, with vehicles jacked up and no place to go, a refrigerator on a back porch, or a collection of any sort of junk outside for the world to see.
New road systems might be great for commerce, but the noise can reduce the value of homes in the area.
A New Noisy Element in the Neighborhood
If your home on a quiet, tree-lined street gains a new, busy road within earshot, you might see property values drop considerably. Any noisy element can have a negative effect. Airports, highways, manufacturing facilities, or anything else that produces enough noise to be heard throughout the community can be a culprit.
Foreclosures in the Neighborhood
A neighbor's bad luck might not rub off on you, but if more than a few neighbors succumb to foreclosure, your home's value could really take a hit. Business Insider says every home near a foreclosure could decline by over $7,000. And for each additional foreclosure, the damage to surrounding property value worsens.
Billboard Advertisements Close to Home
If you need another reason to dislike billboards, here's one. Jonathan Snyder, an urban planner, explains in his report, 'Beyond Aesthetics: How Billboards Affect Economic Prosperity,' that homes situated 500 feet or less from a billboard take a whopping $30,000 reduction in value. The effect decreases gradually with distance.
Declining Public School Quality
Great schools attract home buyers, which drives the demand for housing and home values up, according to the St. Louis Federal Reserve Bank report, 'Nonlinear Effects of School Quality on House Prices.' But if schools drop in rankings, lose great teachers or programs, or otherwise decline, property values follow suit.
Increased Crime in the Area
No one wants to live near a crime epicenter, and property values are evidence of that. Where crime rates spike, home values drop. Journalist's Resource explains that one common thread among crime and its relationship to property value is that the more violent the crime, the stronger effect it has.
An abundance of 'For Rent' signs mean fewer permanent residents, which can reduce property values.
Too Many Rental Properties
Rental properties aren't bad, but a surplus of rentals in the neighborhood might drive down the value of your home. However,
Property values aren't static, and they don't always increase. This is true, even if your lawn is pristine and your whole house sparkles. The only way to really know for sure is to keep tabs on its value. If you see a continuing downward trend, it might be a signal that it's time to sell, or to wait and hope that the market in your area improves.
The tools at eppraisal let you learn the estimated value of your home in a matter of minutes. Simply enter your address, and you'll see how it measures up against your expectations. Click here for a free property valuation today.