Bad neighbours are not just annoying, they can also cut into your property value by as much as 10%, says a leading U.S. appraisal group.
Everything from annoying pets, unkempt yards, unpleasant odors, loud music, dangerous trees or poorly maintained exteriors can cut into the value of your home.
The group suggests before you buy, make multiple visits at different times on various days of the week to try to get a flavour of what’s going on in the neighbourhood and whether it could impact the value of your potential home over time.
“I’ve seen many situations where external factors, such as living near a bad neighbour, can lower home values by more than 5% to 10%,” said Richard Borges, president of the Appraisal Institute. “Homeowners should be aware of what is going on in their neighborhood and how others’ bad behaviors could affect their home’s value.”
The group has some suggestions for homeowners dealing with bad neighbours, including talking to others in your area and approaching the bad neighbour together. You can also look up any planning or subdivision restrictions to see if the neighbour is committing an offense. If all else fails, calling a lawyer could be cheaper than the loss in the value of your home.