In real estate, we use the term “external obsolescence”, meaning a depreciation in the value of a home due to factors that exist outside the property itself. And the neighborhood is one. Ideally, you’d want to have a community that has the following:
- Key businesses, agents, and developers
- Schools and colleges
- Good employment rate
- Access to public transportation and road links
- Water and green open spaces
- Emerging markets
- Shops and restaurants
- Regeneration projects
- Leisure and recreation facilities
Now let’s close in within the 30 ft radius of your home. You’re wondering “Can my neighbors affect my property value?” The quick answer is yes and here are a couple of things to look out for.
While approaching the house and looking out the window, what do you see? For instance, if your home is right next to an empty plot, chances are it may be used as a dumping site by the neighbors. The eyesore with the overgrown lawn, peeling paint, broken windows, old cars, and other junk in the driveway and yard. It decreases the value of your home by 5-10%.
Peace and Order Disturbances
At the end of the day, we all want to live in an untroubled place that gives us total peace of mind. You want neighbors who are not involved in sketchy or crime-related activities. You don’t want to be constantly calling the cops to complain about loud, partying neighbors, or the HOA for loud, dangerous breeds of pets. In general, avoid being in close proximity to places like:
- Gun Ranges
- Strip Clubs
- Funeral homes
- Power plants
- Homeless shelters
- Foreclosed homes
- Waste management and recycling
We’ve all got good neighbors and bad ones — even in perfect communities. Factoring in all the things mentioned before, you’ll get a good idea of a home’s value and make house-hunting a little bit easier. It’s worth hiring a real estate agent to provide professional advice on pricing and valuation. If you’re ready to take the next step and buy or sell a home in North San Diego County, contact our agents and we’ll find you the perfect home. If you need help with managing property in Escondido and North County San Diego, please do not hesitate to contact Broadpoint Properties located in Escondido CA.