Valuing a neighbour
The difference between good neighbours and bad neighbours can affect a home’s sale price by as much as 10 per cent
Neighbours, everybody needs good neighbours.
This catchy tune from the long-running Australian soap opera Neighbours carries some serious home truths when it comes to property ownership.
While I am not sure if anybody has ever done detailed research into the impact of good and bad neighbours on property prices in Australia, from my many years of experience selling real estate I can confidently say it does.
And research that has been conducted in the United Kingdom shows the difference between good neighbours and bad neighbours affects a home’s sale price by as much as 10 per cent.
What exactly do I mean by bad neighbours? Well, in terms of property sales it normally relates to the appearance of the adjoining property.
Untidy yards, overgrown grass, or dusty deserts covered in car tracks, rusting car bodies and other forms of trash can really put buyers off.
And there are the other issues such as dogs that never stop barking, fleas in the back yard because of the neighbour’s pets, and strange, permanent smells.
Then there are the less noticeable but easily discoverable issues including constant noisy parties, screaming matches, swearing, revving engines, disorderly conduct and just inconsiderate behaviour. All these factors will reduce interest from potential buyers.
However, bad neighbours can also create an opportunity. On average, homeowners move every 10 years.
If you are willing to take a property punt, buy next door to a “bad neighbour” and wait for them to sell.
Then sit back and watch the value of your property surge. Happy house hunting.