Can I Sue My Neighbor for Lowering My Property Value?
Find out how a neighbor’s property or actions can negatively impact your home’s value and what steps you can take to eliminate - or at least mitigate - the concerns.
When you take the time and effort to care for your home, it can be upsetting having to look at a neighbor’s unkempt property every day.
It’s even more concerning if you’re planning to sell your home soon, for a neighbor’s property in poor condition can negatively influence a buyer’s decision to purchase your home and even lower your home’s property value.
You don’t have to sit idly by and hope prospective buyers pay no attention to the eyesore beyond the fence line. There are steps you can take to potentially improve the situation. And if all else fails, taking your neighbor to court may be an option.
To arm you with the best advice on this subject, we consulted a leading real estate agent and a veteran real estate attorney.
We’ll start with what determines a home’s value and then move on to how a neighbor’s property or actions can impact that value and what you can do to eliminate or at least mitigate the problem.
How Much Is Your Home Worth Now?
Get a near-instant home value estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.
What determines home value?
Many factors play a role in determining the value of your home.
There are those you can influence and those out of your control.
Factors you can influence
- Condition of your home: Home appraisers rate the condition of a home based on the amount and degree of repairs identified. If well maintained, even older homes can score a high condition rating.
- Upgrades and updates: Every time you make a permanent improvement on your property, you’re essentially writing a check to yourself for at least a portion of that improvement’s cost. This return on investment (ROI) pays out if you decide to one day sell your home.
- Presentation and pricing strategy: Even an attractive home can wither on the vine if the pricing and presentation are off. Too many days on the market can gradually devalue a home, as can poor staging. These are areas where having an expert real estate agent can really pay off.
Factors typically out of your control
- The state of the economy (even politics)
- Interest rates
- Supply and demand (inventory levels)
- Location (neighborhood)
- Age of your home
- Disasters (natural or man-made)
- Market cycles (consumer and investor behavior)
- Zoning regulations
- Generational shifts
- Real estate comps (comparable nearby properties)
An easy way to get a preliminary idea of what your home is worth is by using an online home valuation tool like HomeLight’s Home Value Estimator. The algorithm calculates your property’s ballpark value using historical transaction data and some specific information you provide about your home.
