How can nearby foreclosed homes affect your property value? | News
CAPE GIRARDEAU COUNTY, MO (KFVS)- It could be a positive outlook for the housing market from where it's been for the past few years.
Donna Joplin is an appraiser, and covers seven counties in southeast Missouri. She said the housing market crash left foreclosed homes all over the place, which could actually be some good news now.
It depends on your home, but if you live near a foreclosed a rundown home it won't necessarily bring your property value down because they're in a lot of neighborhoods.
"The one home in the neighborhood that is falling apart, needs repair, isn't going to make your house appraise for low, and the one big house in your neighborhood that's not comparable to yours, it's not going to set your price either," said Joplin.
But if they're all over you neighborhood, that could have an effect.
"If you've got one there, and that home, in the condition that it is, probably not comparable to the one we're appraising the sales are going to tell the story, if you see that happening more often where you have more and more run down homes, and that's getting to be the trend, or the norm, then you could have a problem," said Joplin.
Joplin said appraisers look at the sales of homes within a mile in the past six months to a year, to gauge the value of your home.
While rundown homes, crime and rental properties can play a role in your property's value, they won't automatically lower the value.
Joplin said a lot of cities have ordinances that a rundown property would violate.
She said a lot of times neighbors will file complaints until something is fixed.
Joplin said she can tell the market is getting better by the number of new construction homes she's appraising. She said in recent years it's been zero, but said she's looked at quite a few this year.
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