How Can Neighbours Affect Home Value: All You Need To Know

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If you’ve ever had trouble selling your home or getting the offer price you thought it was worth, you may have racked your brain wondering why. Truth be told, it may not have had anything to do with the physical appearance of your house or yard.

Lesser-considered factors, such as untidy or noisy neighbours, can also lower the value of your home or make it difficult to sell.

If you plan on selling your home in the future, it is essential to know what factors reduce its value. This article will help you understand how neighbours can affect home value.

As for the factors that are fully in your control, this website provides homeowners with maintenance tips to care for the exterior and interior of their home and keep it in good condition for many years, which will also help to improve its value.

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How Neighbours Affect Your Property Value?

Whether you’re a home buyer looking for the perfect neighbourhood or a homeowner trying to figure out whether your house is worth more or less than it was last year, knowing how your neighbours can affect home value is essential.

Here are some factors through which neighbours affect your home value:

Financial Issues

When a neighbour’s home falls into foreclosure, it is one of the most damaging things that can happen to your property value.

Foreclosures can hurt a potential buyer’s impression of the neighbourhood. A foreclosed house next door can undoubtedly depreciate the value of your own home.

Physical Issues

The value of your property may decrease if you live near other properties that are an eyesore or in obvious need of repair.

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This is mainly because prospective buyers will not want to buy a home near a run-down house or yard.

Legal Issues

If you live next to a known convicted criminal or someone who is actively engaged in criminal behavior, your home’s value will likely decrease as a result. Further, if your neighbourhood has a high crime rate, you can expect your home will lose value.

These factors may also lengthen the time it takes for you to sell your house.

Noisy Neighbourhood

Noise pollution of any kind can depreciate a home’s value. Homebuyers may inform their real estate agent that they do not want to reside near railroad lines, busy crossroads, or an industrial or commercial zoning area.

Schools in the Neighbourhood

Even if the purchasers do not have children, the quality of surrounding schools impacts home prices in a neighbourhood. If your home is located in an area with excellent schools, demand is likely to be higher, and you can expect a higher selling price.

Businesses and Amenities in the Area

Convenience is a significant consideration for prospective buyers. When compared to a house in a more rural or less-settled area, a home in a neighbourhood with lots of amenities, such as a park, community pool, and close grocery close, will be more desirable to buyers.

If the area is far away from all such amenities, housing prices will tend to be lower.

Occupational Prospects

Similarly, a home in a neighbourhood with a high employment rate will be more valued than one in a low-employment area. Areas with high employment rates are attractive to potential homebuyers as they provide significant job options and advancement opportunities.

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What’s Causing Your Home’s Value To Drop?

It can be difficult to put a monetary value on something with sentimental significance, but this needs to be done when you set out to sell your home. Here are some possible reasons why your home may not be valued as high as you expected.

Your House Can’t Compete With the One Down the Street

Appraisers compare your home’s potential value to recent sales of similar homes in the region. But the houses must have similar facilities and features and be in a similar condition to be comparable.

Uncooperative Tenants

The tenants in your home might depreciate its value by mistreating the property. If you can afford it, choose a professional tenant placement firm when seeking tenants. In any case, you must have an appropriate rental agreement in place that provides you with some redress as the homeowner in the event of damages or other issues that may emerge.

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How to Avoid Having Your Neighbours Ruin Your House Sale

While your options may be limited in some instances, such as a foreclosure, here are some steps you may take to avoid having your neighbours interfere with your house sale.

Talk to Your Next-door Neighbour

Building a relationship with your neighbour is the best place to start. Make friends, or at least friendly acquaintances, with the people nearby. Then, if a problem arises, you will be more comfortable having a friendly face-to-face discussion.

In these instances, maintain your composure and describe the situation, asking that your neighbour address the concerns at hand.

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Offer to Assist

In many circumstances, a personal situation is the source of the problem. If your neighbour, for example, has been caring for a sick relative, yard upkeep may not be a top concern for them.

If this is the case, offer to assist if you are able. You may also create a month-long volunteer rotation with all of your neighbours.

Make a Formal Request to Your Homeowners Association (HOA)

You can take it up with your local HOA if the issue is a blatant violation of the rules. The board can then issue an official notice of violation to your neighbour, arbitrate your dispute, and assist you in taking future action.


A falling property value can make it more challenging to sell your home or force you to sell it for less. Unfortunately, no matter how well presented your home is, sometimes neighbours can seriously detract from your efforts.

However, being aware of potential concerns, planning for them, and dealing with them as soon as possible, might help you lessen those consequences and get the sale you want.