This week I listed a 5 acre property in Castlereagh for sale with a price expectation of $1,450,000 – $1,550,000 it sold within 5 hours for well above this price… The land was amazing, the view was breath taking, the smell… well lets just say it was slightly pungent. This amazing property was located next door to a poultry farm !
While I was lucky this time that the property sold easily and for a fantastic price, the poultry farm was definitely a turn off for many…..some of which refused to even stop and look at the property once they saw what was next door. It got me thinking, just how much can a neighbour devalue a property?
One particular example in Penrith is a beautiful home on Evans street that I once absolutely loved. I watched the home be built and I would admire it every time I drove past. In the past few years though a scrap metal collector has moved in next door and has turned this residential block into an absolute junk yard. I can’t help but feel absolutely devastated now for the once proud home owners.
Similarly the infamous Bondi horders; can you imagine spending over a million dollars to live next to this:
One would assume that not only would this be one hell of an eye sore but also be home to a variety of creepy crawlies that would no doubt pester local residents.
According to the Appraisal Institute an unsightly neighbour can decrease the value of a home by up to 10%. Personally, I think this figure is on the conservative side!
Not only that but it could also dramatically increase the time your property sits on the market before finding that one in a million buyer who is willing to overlook what most wouldn’t.
So what can you do to ensure this does not happen to you? Unfortunately not a great deal…. but here are a few steps you can take to minimise the chances:
1) Visit a property you may be interested in purchasing at various times, not just open home times which may have been chosen strategically to avoid certain neighbours.
2) Ask your real estate agent about the demographics of the street i.e if there is any housing commission.
3) Ask whether the neighbours are tenants or landlords and how long they have resided there, this information is generally available to real estate agents through websites such as RPData.
4) If you are super keen you can even go and door knock the street, introduce yourself as a potential neighbour and I’m sure most will be more than happy to have a chat to you and reveal all the dirty secrets of the neighbourhood.
5) Join neighbourhood groups on social media! You will hear all about the issues of the suburb such as who’s shoes have been stolen, who parks too close to others driveways, even who allows their dogs to poop in their neighbours yard!
6) Choose a street where you can tell the residents take pride in their homes, if new residents move in you have more chance that they will follow suit.
Happy buying !