How Does Your Neighborhood Affect Your Home's Value?

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By Clever Real Estate Updated August 25, 2022


How Does Your Neighborhood Affect Your Home's Value?

A key factor in selling your house will be the appraisal done by the seller's lender. While that seems far off when you're just listing your home, it affects the appeal to buyers in the area as well. If you're wondering how does your neighborhood affect your home value, you've come to the right place.

Below, we'll explain 6 ways your neighborhood could affect your home value. Curious what your house is worth? Get a free, instant home value estimate.

How does your neighborhood affect your home value?

Like it or not, our neighborhoods affect the home value. If you originally bought in a nice neighborhood that slowly turned since you've lived there-- you could be facing quite a drop in home value.

What other neighborhood aspects affect the value of your home? Here are several more.

1. Cluttered neighbors

You know that stressful feeling you get when you arrive home from work and there are dishes in the sink and laundry to tackle? That's the feeling potential buyers will get if your neighbors' yards are in disarray.

While you may be an excellent landscaper, odds aren't always in your favor that your neighbors are the same way. You may be able to overlook the overgrown shrubs and patches of dying grass, but buyers won't, and neither will the appraiser.

If your home is among those surrounded by disheveled yards, you can expect a reflection of that in its ability to sell.

A great remedy for this is to either offer a bit of yard care to your neighbors, rally some neighbors together to make and enforce covenants, or build a privacy fence.

2. Proximity to amenities

The distance between the house and local amenities can increase the sale price of your home significantly.

For example, a recent study completed by ranked the top five neighborhood characteristics that buyers look for.

They are:

  • Safety
  • Commute
  • Real Estate Prices
  • Cleanliness
  • Public Transit

The commute to and from bigger cities is important. If your home is near a highway onramp, it could increase your home value. On the other hand, if it is close enough to hear the cars and partake in the air quality, it can decrease your home value.

Distance to retail centers is also important. If your home is no less than a mile away from the closest retail center (in suburban areas) or within a quarter mile in urban areas, your home value could increase between six and eight percent.

3. Location

The location of your house itself can also impact the sale of it significantly. If it's on a busy street, in a shabby area, or too close to community gathering places, this could detract from the value of your home.

The appraiser will take a look at the neighborhood surrounding your home and adjust the value according. If there are several homes in the are that have foreclosed in the last year or are in the process of foreclosing, that could drop your value significantly.

Another feature of location that affects the value of your home is it's proximity to multi-family housing or other rentals. Homeowners tend to take better care of the property than a renter does, and homebuyers know it. If your home is on the same street as an apartment complex or near to rental property, you may see that reflected on your appraisal.

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4. Features for families

If your home is geared toward people with kids, the value can increase with each family-friendly must-have. Families are on the lookout for homes in quiet neighborhoods, away from busy streets, and in good school districts.

If your home is within walking distance of a park-- but not right next door to one-- that can help your value as well.

Another features families like to see is proximity to things like public libraries and farmers markets. If your home is near to these types of features, make sure to mention it in your home listing, as well as maybe talk to the appraiser about it.

5. Crime and safety rating

The crime rate in your neighborhood definitely impacts the value. If there are high rates of crime such as theft, robberies, and violent crimes, home buyers will be hesitant to buy in that area. Additionally, if there are sex offenders near your house, that can factor into the value of your home.

To view your home's crime and safety rating, you can go to and search your neighborhood. This will provide you with local crime rates over the years, as well as information on the safety and other community information.

6. Noise and light pollution

Is your home near a train or on the main street? That could detract from the home value as well. Any noise or light pollution takes away from the appeal for homebuyers.

A great way to combat this is to identify the problem in your house listing and what you did to fix it. If you installed blackout curtains or nice blinds, you may want to include those in the sale of your house.

Key takeaways

You can't control how your neighborhood affects the value of your home, but there are things you can do to your property to get the most out of it.

List the positive attributes (like local parks and short commutes), build a fence to deter local dogs, and landscape your yard. If you have high crime, feature the state-of-the-art locks on your doors and windows. Don't hide the negative, but you don't have to let those features stand out naked on the listing.

The neighborhood can affect your home value up to 10%, and since 79% of potential buyers drive by your neighborhood to gauge a fit, make sure your property stands out as a gem.

If you need help figuring out how your neighborhood affects your home value, talk to a trusted local real estate agent. Not only will they be able to point out areas that you can use to improve your home value, but they'll also be able to tell you a reasonable price at which you could sell your home now.

You can also compare estimates from online home value estimators. Several estimators use information about your neighborhood to estimate your home's value. You'll want to compare multiple estimates to get a better idea of what your home might be worth.

💰 How much is your home worth?

Discover the true value of your home with our Home Value Estimator!

Find My Home's Value

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