I recently read an interesting article about home prices and what can make a home more or less valuable. Below is the list of nine top things which devalue a property or neighborhood, and my commentary on each:
1. Bad School District – I completely agree with this one. Families with school age children are especially sensitive to being in a top rated school district and to not being in a bad one. Even the nicest home in a poor district will be hard to sell at top dollar.
2. Located near a strip club – I sort of agree. We don’t have a ton of strip clubs here in Colorado Springs, and of the few that do exist they are far enough away from the houses that values are not drastically affected.
3. Area with a high rent concentration – I agree. If the majority of houses in a particular area are rentals, buyers think the neighborhood may not look as appealing. They assume tenants will not properly upkeep the homes. And apartments buildings which border a backyard are considered a drawback as well.
4. Homeless shelter nearby – Sad as this is, I have to agree that it will affect the value of a home.
5. Located near a cemetery – We have a few cemeteries in Colorado Springs. The houses nearby are not directly affected so long as one cannot see the cemetery from them. If the cemetery is across the street, then yes the value is affected.
6. Funeral home nearby – I don’t agree with this one. I have not seen a drop in neighborhood values because a funeral home is in the area.
7. Power plant/lines visible – I know from experience that those large overhead power lines do negatively affect a property’s value. Some of them even make a buzzing noise which makes buyers nervous. It doesn’t matter how nice the home is…if near a large power plant or power lines, buyers will consider it less valuable.
8. Near a shooting range – I disagree with this one making a home less valuable. Here in Colorado shooting ranges are quite common. Most are indoors where you cannot hear the shooting noise from outside. And the outdoor ranges are not near housing.
9. Near a hospital – This one is on a case by case basis. Example: we have that nice, new Penrose Hospital near Powers and Woodmen. It’s a lovely facility and has not negatively impacted house values in the nearby neighborhoods at all. But if you consider the older Penrose hospital downtown, that one is right across from a bunch of homes. When those ambulance sirens go off at all hours of the day, this makes the nearby houses less appealing.
If you are home shopping and want my opinion on the neighborhoods you are considering, don’t hesitate to contact me. I am always happy to share information.