Neighbors affect home values

good neighbors
Good Neighbors (infographic from

The housing market has been fairly good in recent years.  In fact, the shortage of homes for sale has shown how competitive home buyers can be as they try to outbid their cohorts for hot properties.  Even homes that are in need of “tlc” or have been neglected in some way have found new owners too.  But, as I have mentioned in the past, not all homes sell.  And for some home sellers whose homes have not sold, they only need to look their neighbors.

That’s correct.  Your neighbor may have more sway over your home sale and property value than you think.  A 2013 news item from the Appraisal Institute warns home sellers and buyers about the neighbor factor (Bad Neighbors Can Reduce Property Values, Appraisal Institute Warns;; January 30 2013).  Not only can bad neighbors affect your sale, but can “significantly reduce nearby property values.”

Former Appraisal Institute President Richard L. Borges II, MAI, SRA stated:

I’ve seen many situations where external factors, such as living near a bad neighbor, can lower home values by more than 5 to 10 percent…Homeowners should be aware of what is going on in their neighborhood and how others’ bad behaviors could affect their home’s value.”

“Bad neighbors” are often characterized as inconsiderate, if not sometimes belligerent.  Typical neighbor complaints stem from pets, excessive noise, and poor exterior home maintenance.  In high density neighborhoods (such as townhomes and condos), parking and trash/recycling debris can also be a source of neighbor conflict.

Neighbor disputes are often resolved by talking it out.  However, if you find that your neighbor is not receptive, you may have other avenues of recourse.  If you live in a Homeowners or Condo Association, your association may offer assistance in resolving your issue.

Montgomery County addressed the issue by enacting “Good Neighbor” ordinances in 2011 “to preserve the quality of life” in the county.  The purpose was to reduce the influx of commercial influences into residential neighborhoods, and maintain their domiciliary character.  These ordnances were directed at home based businesses, parking of commercial vehicles, off street vehicle parking, and paving of front yards.

If you believe your neighbor issue arises from a code violation, you can contact the appropriate county department to investigate a complaint.  For example, Housing Code Enforcement can investigate such things as housing and building standards, overgrown weeds, and excess debris in yards.  Whereas the Department of Police – Animal Services Division can investigate common pet complaints such as an unleashed pet roaming the neighborhood, or a neighbor not cleaning up after their pet does their business on your yard or common areas.

Unfortunately, there are occasions where trying to resolve your neighbor issues civilly comes up short.  In extreme instances, however, you may have to seek legal counsel.

Being a good neighbor is a two-way street, often requiring some compromise and offering assistance.  Housing experts suggest that you can resolve your neighbor issues by talking to them.  All too often, neighbors who seem neglectful of their homes are actually in need of assistance.  Regardless of their issues, they may be too proud to ask for help, they don’t know where to get help, or they are so overwhelmed they don’t know they need help.  Talking to your neighbors and lending a hand can not only mend fences and build a stronger community, but may also increase the value of your home.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.