Investing in residential real estate can be a smart financial move in the long-term sense. Those who maintain ownership of real property can convert a fixed ongoing expense generated by the need for housing into a source of personal wealth. Instead of paying rent, they pay a mortgage and slowly accumulate equity in the home where they live.
When looking at long-term property values, residential real estate in New York tends to appreciate value over time. However, not every property conforms to that trend. Some people may find that their home does not accrue value as rapidly as other residential parcels due to factors outside of their control. A poorly-maintained or problematic neighboring property is one of the factors that can significantly reduce the fair market value of residential real estate.
What impact does a neighbor’s property have?
Some people cease investing in major repairs or upgrades to a property due to temporary financial challenges or advanced age. Others simply don’t prioritize property maintenance or care about the appearance of their homes.
Vehicles left out in the yard, boarded-up windows and unmown grass are among the property maintenance oversights that could affect not just an individual homeowner’s property value but also the values of others living nearby. Other times, it could be an incursion over a boundary that causes an issue. Even someone who maintains their property well could negatively affect a neighbor’s property value by regularly using part of their yard or building over the property boundary.
Some experts estimate that an unattractive neighboring property could decrease the value of other nearby residences by as much as 10%. People may forgo making offers on properties that clearly have problematic neighbors. When they do make offers, the transaction may prove to be less lucrative because of the neighboring property. People sometimes find themselves in a difficult position where they need to take legal action against a neighbor over improper real estate maintenance or other issues.
Those who realize that the conduct of a neighbor could have major implications on their property values may feel more inspired to take action via a real estate dispute related to unsightly property. Holding neighbors accountable for their lack of maintenance or boundary incursions can potentially help people to protect the investments they have made in their homes.