Uncontrollable Factors that Will Decrease Your Property Value
And How to Avoid Them...
A couple of years ago, a close friend of mine purchased a beautiful three-level townhome in a high-traffic part of town. At the housewarming, I remarked about how amazingly decorated the place was, with its fresh paint, and other cosmetic enhancements. Since not too many of my friends are homeowners just yet, I was thrilled for her---and for the great deal she had apparently gotten. I just knew that in a few years, the market value on her new home would practically skyrocket, leaving her with a prized piece of real estate on her hands. In speaking with her recently, my thoughts could not have been farther from the truth. In fact, her property value had decreased instead; and she was considering selling the place, making a clean break, and forging a new start somewhere in another part of town. It was then that I realized that the time, money, and effort you put into a home purchase could be moot where property values are concerned. And the bad part is that it could be through no fault of your own...You Can Pay Your Mortgage-But Can Your Neighbors Pay Theirs?
In speaking with my buddy, I was informed that a few of the condos in her area had been foreclosed upon; thus, she informed me that refinancing for her would be nearly impossible. In essence, foreclosed homes in your neighborhood are not good for business. Unless the homes are renovated and/or quickly resold to another party, their empty status will do nothing but drive down the value of your own property.
Consider the fact that these homes will lack the upkeep needed to meet the standards of others in the community. Things like necessary repairs, peeling paint or siding, and unkempt landscaping all bring down the overall appearance of the area. And if a home is left unoccupied for a lengthy part of time, there is also the potential for squatters and thieves to vandalize the home. This in and of itself will decrease the property values of adjacent homes.
College Blues
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