Can A Fixer Next Door Lower Your Value

Colin Delaney February 24, 2013

Costa Mesa Real Estate Neighbors’ effect on appraisals

When calculating the value of a property, an appraiser also factors in surrounding conditions. Neighborhood nuisances like an overgrown yard or a resistant odor could, in some cases, bring down the value of adjacent homes by 5 to 10 percent, according to the Appraisal Institute. This is no different for our local Costa Mesa real estate market.

Can A Fixer Next Door Lower Your Vaule

What a Costa Mesa homeowner might refer to as a bad neighbor, the appraisal industry calls “external obsolescence” – depreciation caused by factors of the property and beyond the homeowner’s control.
Some issues are not always permanent and an appraiser may overlook them. But an obvious eyesore, like a yard cluttered with old cars, for example, may be enough to prevent a neighboring property from selling. I’ve seen this in Costa Mesa, haven’t you?
The perception of what’s unsightly varies by neighborhood. It’s possible that even a roof covered with large solar panels might be considered obtrusive in some areas, though the impact on nearby homes would be far less negative than if the property was run-down.
Some neighborhood annoyances may be potentially mitigated with help from the local municipality. Unregistered vehicles in a yard, for instance, or a chicken coop and thumping late-night music, may violate local ordinances.
Costa Mesa Real estate professionals recommend homeowners work directly with their neighbor before making a complaint, to avoid future problems. It’s easy to ask in a friendly way if they can remove the car from their lawn, or perhaps cut the grass before the open house. Believe me, I’ve had lots of times when the people selling their Costa Mesa home will just go ahead and take care of that nuisance lawn themselves!!