Property values can be finicky things. Luckily in the Phoenix area, we have been seeing consistent growth in property values for some time. And while obvious things like the age of a home, amenities and nearby employers can have huge impacts on property values, many people do not realize that the following factors can also help or hurt a property value. Before you buy or sell a home, keep these things in mind.
Property Values and Things That Influence Them
Sure, age of the home, condition of the property, the amount of bedrooms and bathrooms are all obvious factors in determining home value, but did you know about these?
Nearby businesses (but not just any businesses)
Sure, it is easy to see how having a home near a large employer with a campus-style setting could improve property values — All of those workers need to live somewhere, right? But did you know that specific businesses are especially good for property values? A Fry’s or Safeway being built around the corner might be convenient, but a Whole Foods or a Trader Joe’s might be better. A recent study revealed that those two stores and Starbucks have significant correlations with increasing property values. And just when we were going to start complaining about having Starbucks on every corner …
Death on the property
This is a somewhat subjective factor, but death happening in a house can have very real impact on property values. As you can probably imagine, violent deaths like homicide have more profound negative impacts on property values. But in some areas of the country, houses just being close to cemeteries, crematoriums or funeral homes can results in lower property values.
Disclosure requirements for properties vary from state to state, so be sure to talk with a real estate professional to familiarize yourself with the requirements before buying or selling a home.
What is in a name? Maybe more than you think. And the phenomena is not limited to major cities with iconic streets. For example, nationwide, home located on a road called “Main Street” are worth 44 percent less. Coincidence?
When enough of the data was analyzed, researchers found definite patterns implying the street names, including suffixes, consistently impact property values, though to what extent can vary based on geography. But as a general rule, the more common the street name, the more likely and strong its negative correlation with property values — hence the eye-opening differences in property values for homes on Main Street.
Proximity to the dump
Whether it is purely stigma or because of unpleasant odors, homes located near dumps and landfills can certainly have a significant diminution of property values. However, it should be noted that this seems to be the case exclusively in densely populated urban areas. In rural areas with sparser housing density, proximity to a dump or landfill seems to have a small or nonexistent impact on property values. Whether you are buying or selling, keep this in mind and consider the type of neighborhood you live in. And as with any questions you might have about property values, be sure to ask your realtor if they have any more insight into how it might impact your decision to make an investment in a specific piece of real estate.
You have looked at all of the pictures of the listing online, taken the virtual tour and already started using Google Maps to plot your potential commute to work. The house is perfect … until you pull up and notice that the people next door have a house or yard that is in a serious state of disrepair.
While it may not always seem fair, property values can be strongly influenced by the neighbors. Not only do people want to live in neighborhoods that look nice, but homes that are not cared for can even be an indicator of an unsafe neighborhood. Alternatively, your neighbor’s house may look great, but if they are constantly throwing loud parties or have a hobby that involves loud equipment, it may also be a turnoff for potential buyers that will ultimately decrease property values of surrounding houses.
The havoc bad neighbors can wreak on your property values is the most logical explanation for why homeowners associations (HOAs) are correlated with higher property values while homes in neighborhoods without them usually cost less. HOAs are able to enforce rules making people maintain at least a certain level of upkeep around their properties.
You are probably asking yourself, “WHAT? A home is worth more because a board can tell everyone what color to paint?” Funny you should mention it …
Obnoxious paint colors
There is a reason that most realtors will advise you to use neutral colors if you are getting ready to sell a house. You want to appeal to as many people as possible and make it so that a potential buyer can move into the property without having to invest the time and money it takes to paint over a color that they may not appreciate. While “obnoxious” is admittedly subjective, it is a pretty safe bet to stick with whites, grays and beiges. Save the bright paint for wall art or prepare to paint over it before you leave to recover the decrease you will see in property values with the unique paint left intact.
There are certainly more things that can impact your property values. To get a free home valuation from one of our qualified real estate agents, fill out this form. We’ll give you an honest assessment and help you decide whether or not now is the time to sell.