Factors That Can Impact Your Property Value
I would like to make a shout out to Schadd for asking about this topic. He lives in a neighborhood that will soon be home to a new multi-million-dollar high school. As a testament to Omaha’s growth, there are several new schools in the Omaha Public School System and Elkhorn/Bennington School Districts on the horizon.
When you consider that your home is probably one of biggest investments you own, it makes sense to do whatever you can to preserve its value. If you’re like most homeowners, you may not be aware of the possible factors that can lower your property value.
If you’re on top of this now you can save yourself some heartache by considering these factors before you make that purchase offer. For some homeowners, depending on circumstances, they may have bought a home but did not foresee some potential downfalls. Neighborhoods can and do change and no one can predict the future.
Many of the items that will lower a home’s value can be found on, in or around a property. It is important to understand how these factors can influence the long-term value of a home. Sometimes Buyers get so caught up in the excitement of buying a new home they forget that the house is an investment.
It’s too late when you discover later on that you bought a lemon so read on to see the factors that can impact your property’s value.
Many home Buyers are thinking about having children or already have children. Even if they are not planning on having kids immediately, they’ll still look at schools before buying because school quality is often a top priority. That means neighborhoods almost always benefit from being in close proximity to the cream of the crop.
Research has shown that Buyers will pay more money for properties in a top school district. From experience, homes that are located in the best school districts will hold their value better, even when market conditions are not ideal. There will always be a better demand for homes with the best schools. Fortunately for Omaha we have a lot of good schools and according to U.S. News and World Report, Nebraska ranks in the Top Ten for quality of schools and education.
Power lines are a necessity and play a huge role in our modern lifestyle by bringing power to run all of our gadgets. Unfortunately, even they are the lifeline to all of our modernisms they are not a good thing to have on or near your property when you are a homeowner.
They buzz. They’re ugly and they are associated with health problems. A quick search on Google will bring up all types or theories, I can’t say whether or not they are true so you’ll have to form your own opinion but most people take a better-safe-than-sorry approach. Research would suggest that high-voltage power lines can increase the incidence of several kinds of cancer, as well as other diseases. There is also some association with headaches, fatigue, anxiety, insomnia, rashes and even muscle pain. A home may seem like a real bargain if it is near power lines, but there is a reason for the low price, being next to power lines typically lower a home’s value.
Outdoor Shooting Range
While some people may love the idea having an outdoor shooting range nearby, rarely does it translate well when considering the purchase of a home. If you’re a few miles away—great—however, if the gun range is right next door you better think twice. In addition to being loud, there’s also a chance that a stray bullet could hit your property, or worse—YOU!
Train Tracks or Major Highways
If you live in a big city, being close to a train station is highly desirable when it comes to homeownership. Lots of home buyers want to be located close a commuter rail. In Chicago you hop on the “L” and go practically anywhere but this is Omaha and the only commuter train station is downtown and is non-stop to the next city. The other 99% of train traffic is freight and the tracks are heavily travelled—just ask anyone that lives around 192nd and Blondo Street.
Living next to train tracks means dealing with noise at various hours in the day and backed-up traffic. And, if a Buyer has kids, it could deter them from the purchase because of safety concerns. Consult with your agent about the impact of train tracks on property value. While not everyone may like them, there are some very nice properties with tracks almost in the back yard. Ask your real estate agent how much of an impact the train tracks or highway has on reducing the market value.
It is possible to look up the registered sex offenders in your neighborhood. If Buyers see that there are registered sex offenders in your neighborhood, it will drive down the value of your home. One study we found shows that the presence of a sex offender in your neighborhood could decrease your value by as much as 12%. However, a distance of 1/10th of a mile or further away values were less effected.
If you’re a parent the thought of having a sex offender living nearby is a scary thought. Your agent may have no idea if a registered sex offender is living in the neighborhood so, if that if a concern for you, you can check your neighborhood here.
This list could potentially go on forever but I’m going to stop here. Other things to consider below, some of them have been covered in earlier blogs:
- Hoarders Next Door
- Unusual Upgrades
- Noise Pollution
- Poor Color Selections
- Outdoor Advertising
- City Dump
- Power Plant