Factors in Lowering Home Values
There are many factors that go into a home’s value, and if you’re searching for a new home, particularly as a first-time homebuyer, you need to be aware of these. At Altius Mortgage and our partners at Mortgage Ogden, our mortgage brokers are here for more than just arranging mortgage loan services – we’re here to provide advice on every step of the process.
What are some key factors that might lower home value? These are important to consider as you look for a home – if they’re factors you and your family can put up with, they might help you get a great deal. Here are some factors to be aware of.
Environmental Noise
Even if they’re just the typical sounds of a busy city, environmental noise can have a surprising effect on health – and on home prices. Recent studies show that urban noise could be contributing as much as $3 billion per year in extra health costs in the US.
For this reason, homes in louder areas tend to be assessed at lower values than nearby properties that are in quieter areas. Even features you may not have considered as noise factors might be considered here; think of a 24-hour supermarket, which will reduce nearby home values by 5.1 percent, according to research from realtor.com (only within a 0.1 mile radius).
Emergency Services
Living close to a hospital, emergency room or fire station could lead to a major reduction in cost. A hospital with an ER cut down home prices by an average of 7.6 percent, while fire stations came in at just 1.8 percent reduction. This is due not only to noise, but due to potential transportation concerns.
Places of Worship
Living near a church, synagogue, mosque or other religious building with a weekly attendance of at least 2,000 could reduce surrounding property value by over 5 percent. This is due in part to traffic and parking considerations, and also to general neighborhood crowding.
For more on changing home values, or to find out about any of our other services, speak to the mortgage brokers at Altius Mortgage today.
