Things that impact a home’s value are a bit of a mystery to those not employed in the real estate or finance industries. Sure, some of them are obvious, such as a location within a strong school district.
Others, though, aren’t quite so obvious. Let’s take a look at some positive and negative events and conditions that can impact your home’s value.
It took the confluence of several events to create the perfect storm in the real estate market when the bubble burst. When all was said and done, homeowners in the U.S. lost over half the equity in their homes.
There really is no way to protect your equity if another bubble comes along. Thankfully, there’s no sign of one on the horizon.
Speaking of the housing market crisis, the word “foreclosure” became one we all too often heard. It seemed that almost every block in every neighborhood had a foreclosed home.
A foreclosure on your street will bring down your home value. If that home is located within 250 feet of yours you will lose, on average, one percent of your home’s value, according to an MIT study.
Here again is a circumstance that you can’t prevent. Being patient until the market corrects is your best bet.
A large real estate news site published the results of a study a couple of years ago that surprised many in the industry. People actually like living near a cemetery.
In fact, the study finds that “homes less than 50 feet from a cemetery sell for more money per square foot than homes farther away.”
The homes do tend to take longer to sell, however.
When searching for a home, it’s a good idea to check the Minnesota Department of Corrections website to determine if a sex offender is living in the neighborhood.
If so, homes in the neighborhood experience a 9 percent drop in value and spend an extra 10 days on the market compared to homes nearby without such a resident.
Yes, the negatives outnumber the positives when it comes to what impacts your home’s value. Sadly, many of them have no remedy. Shop for your new Saint Paul home carefully to avoid some of the nastier problems.
“Champoeg Pioneer Cemetery” by Aboutmovies/Creative Commons Attribution 3.0 Unported license.