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Is Commercial Development Affecting the Value of Your Home?

Buying & Selling | By Alexa Bricker | 2 Likes
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If you had to choose between a neighborhood that has a Starbucks, a few grocery stores, and a mall, versus a neighborhood with none of those things, which are you more likely to pick?

No one wants to move into an area on the downward slope of development. As commercial buildings close and fall into disrepair, so too, goes the quality of the residential development. The value of a residential area can be dramatically affected by surrounding commercial properties, for better and for worse.

Though there are plenty of commercial entities that can boost the value of your home (e.g. transportation centers and nice restaurants), there are also plenty of others that can send it plummeting.

empty billboard

Billboards and power lines

To put it simply, eye sores like giant billboards and mangled powerlines are one of the most detrimental effects on home value, and for obvious reasons. People don’t generally want to live in close proximity to an obnoxious billboard because it severely detracts from curb appeal, and no matter what safety precautions are taken, power lines cast an eerie, overly-industrial shadow.

 

landfill of garbage

Scrap yards and landfills

This one is really a no brainer, but aside from the obvious downside of rusted cars and piles of trash, the smell of these types of properties alone is enough to bring down value. The same can apply to any commercial property that provides not only an unpleasant view, but also an unattractive stench, like certain farms and factories.

 

field cemetery

Cemeteries

You can blame horror movies for this one, but there aren’t many people chomping at the bit to move in near a graveyard. Cemeteries can drop property value by as much as 12%, according to Realtor.com. And while you might not have a full-on Poltergeist experience, selling your home down the road might pose a challenge.

 

teacher teaching at school

Poorly rated schools

High quality schools are something many people consider when moving into a new area. In fact, it’s one of the top draws, even for buyers who are not yet parents or whose children have since grown. But if a school is rated poorly, buyers seem to run for the hills. A bad school is one of the biggest drags on home value. So, even if you don’t have kids and never plan to—pay attention to school ratings.

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