Five Things that Will Ruin Your Home’s Value

by Isaac Benmergui, Esq on October 19, 2017

Home valueEveryone expects an asset as large as a home to increase in value, but that’s not always the case. You can’t control for factors like the economy or the housing market, but there are some factors under your control that can wreck your home’s value. Make sure you check for these issues before you buy a home.

  1. Sinkholes. If your home has sinkhole damage, you’re likely looking at a 30 percent decrease in value plus the cost of repairs. In Florida, homeowners are required to tell you about sinkholes, but there are plenty of horror stories that prove that doesn’t always happen. To be clear, the threat of living in a sinkhole-prone area doesn’t seem to impact value at all. It’s only after it happens.
  2. Tacky Billboards. Advertising is everywhere! But if it gets too close to your home, you can see a serious drop in home value. For example, one study in Philadelphia found that homes within 500 feet of a billboard were worth $30,826 on average. On the contrary, communities with strict billboard controls had higher median incomes. Lower poverty levels and lower home vacancy rates.
  3. Hoarders Next Door. While you’re busy checking out the property you want to buy, you may not stop and think about what the neighbor’s house looks like. But with residential lots’ ever-shrinking size, it’s becoming more important. A neighboring home with an overgrown yard, peeling paint or cluttered yard can take 5 to 10 percent off your home’s value. It’s true that an HOA can help with this issue, but that comes with it’s own problems.
  4. Noisy neighbors or pets. In that same vein, noisy neighbors or neighbors with noisy pets can take another 5 to 10 percent of your home’s value. When you’re looking at a home, ask who lives next door, and if they rent or own. Having a rental next door means you’ll have more turnover and less buy-in to the neighborhood than with a owner-occupied home.
  5. A Duke University study found that homeowners living within 1.25 miles of a shale gas well could expect a 24 percent decline in property values if they were dependent on local groundwater as their water source.

 

Call Miami Real Estate Lawyer Isaac Benmergui at 305.397.8547 and set up a no charge, no obligation consultation to discuss your case. We have over a decade of experience handling Real Estate and Civil Litigation cases throughout Miami and South Florida, and will use our expertise to help your case to the best of our abilities.

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