Your neighbors may be bringing your home’s value down more than you think

Buying a house is a complex and strategic financial decision that demands research, diligence and patience. While most research into buying a home generally focuses on how to spot a bad foundation, termite damage or other common problems, it is also important to consider your potential neighbors. After all, neighbors can bring down your home’s value by more than you may think.

Physical issues

A neighbor’s unkempt lawn can have a negative impact on a home’s value. The longer a neighbor’s lawn is unkempt and the closer their house is to yours, the more it can devalue your property. A neighborhood’s curb appeal has such a significant enough impact on a home’s value that the Atlantic Bay Mortgage Group suggested considering purchasing a home inside a community with HOA guidelines, which can ensure that your neighborhood never looses its highly valued curb appeal.

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Financial issues

A neighborhood in financial decline will have a significantly negative impact on your home’s value, according to Home Go. The New York Times reported that homeowners can suffer as much as a 1.3% drop in property value when they live within 300 to 500 feet of a home in foreclosure.

Homes in foreclosure are often also neglected, leading to a decline in curb appeal and a further decline in your home’s value.

Crime issues

Neighborhoods with high crime rates can see major impacts on home values. According to, the value of a home drops by around 12% if someone registered as a sex offender moves into the neighborhood. A registered criminal living on the same block can even devalue a home by 4%.

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Other issues

Living near businesses, closed down schools or vacant homes can have a huge impact on a house’s value too, according to The Nest. A noisy neighbor that operates loud machinery or hosts loud parties can drive away interested buyers that inspect the neighborhood before making a purchase decision.