Skip To Content

Seven Neighborhood Home Value Threats When Buying or Selling

When selling or buying a home it is important to be aware of the neighborhood surrounding the house. Several factors are taken into consideration when trying to agree upon a price for the property. The following are seven of the top reasons that the neighborhood can threaten a home’s value.


The local school system is one of the biggest determiners in a home’s value. Poor education ratings or empty school buildings will definitely drop the value of homes in the surrounding neighborhood. 75% of perspective buyers put good schools at the top of their list when it comes to what they are looking for.

Sink Holes

Sinkholes have become a hot topic in real estate, mainly due to so many that have been mentioned in the news recently. Having an existing sinkhole nearby can cause a home’s value to drop by as much as 30%. The funny thing is that sink holes are perceived much like earthquakes. The threat of a sinkhole in the neighborhood doesn’t affect the value, but once one appears, the property values plummet.


Having the city dump located within the neighborhood can cause the home value to go down 7.3% on average. The strong smells are a big factor in this. If there is a hazardous waste site within two miles of a house, the value can go even further down. Many in this situation see a drop of 15%. The decrease in value seems to be more in urban and residential areas than in rural settings.

Power Plants

Power plants can drop a home’s value by four to seven percent if located within two miles. Perspective buyers complain of the noise and the ugliness of the landscape. In addition, today’s buyers are concerned about the power plant’s effect on the environment.


A neighborhood full of friendly faces is a plus, but place a hoarder next door and the value goes down five to ten percent. Unkempt yards, peeling paint, or noisy people and pets also decrease property values in the neighborhood. Combine two or more of these problems and values drop even lower. A registered sex offender living next door will bring down values by 12%.


With the recent economic problems there are many foreclosed homes scattered across the country. A typical American home next to a foreclosed house can take an average of $7,200 off the value. Foreclosed homes within 1/8 of a mile will drop the value by .9%.


Fracking in a neighborhood can lower the home values by 24%. Even if it is only a threat of fracking taking place, buyers will be cautious. There is no solid proof that fracking will harm the natural water supply, but the public has the idea that it will cause the drinking water to be unsafe. They also are concerned with the possibility of burst gas pipelines.

Trackback from your site.

Leave a Reply


Contact Us Now