Handling Your Neighborhood’s Blemish

What do you do if your home’s curb appeal isn’t the problem – it’s your neighbor’s? A recent MSN.com article discusses the importance of neighborhood curb appeal, and what to do about that eyesore next door.

You have added fresh paint, a new garage door and a perky flower garden. In other words, your home is ready to sell! But then you look next door and see an overgrown, almost-dead lawn and a crumbling front step. Can this affect your home’s sale?

The answer is yes, unfortunately. The National Association of Realtors says that an eyesore in your home’s area can shave approximately 10 percent off the market value of your home. Circumstances differ, of course, and an overgrown lawn can be better than boarded-up windows. The situation of your local market also matters. “If there are or were other similar eyesores in the area but the market is heading up, it’s likely that the home will get fixed up or torn down sooner than later,” explains Bob Golden, a veteran Atlanta agent with RE/MAX. “If it’s the only house in the area that looks bad, it can have a greater impact on the resale of neighboring homes.”

Eyesores aren’t an uncommon occurrence in any neighborhood. More than 60 percent of 900 people surveyed by contractor-referral site ServiceMagic.com said they have or have had neighbors who make the street look bad by not performing repairs and upkeep on the home’s exterior. Common problems include tall weeds, imposing trees, dying lawns, piled-up junk (think cars on cinder blocks), peeling paint or an exterior in need of repair, such as a broken window.

So what do you do if you find yourself facing a difficult or less successful sale due to a neighborhood blemish? First, size up the situation. Confrontation can be uncomfortable and difficult. In the ServiceMagic survey, 75 percent of respondents said they had made no direct contact with their neighbors about the issue, while 18 percent said they had confronted the owner, but it created tension and the house remained an eyesore, and 4 percent said the problem was fixed, but created lingering tension. A mere 4 percent said that their talk produced a good outcome all the way around.

According to Tara-Nicholle Nelson, an Oakland, Calif.-based broker, author and creator of the female-focused resource site Rethinkrealestate.com, people who neglect their properties are likely to be one of two types: those physically or financially unable to keep up with repairs and upkeep, or those who purposely buck social norms. Knowing which type you’re dealing with is critical, and you can probably gain some knowledge simply by observation. Is the person elderly or sick? If so, they may just be unable to keep up with the work, and bringing the problem to their attention (and even offering to help) may do the trick.

A group effort may also help, and may come across more as neighborhood improvement projects. Your homeowners’ association may also be a good resource, and can help you avoid direct confrontation. Absentee owners (owners who are renting a property out) may require a lot of correspondence and more work on your part, as you may need to offer to secure contractors or do the work yourself. In any of these cases, ask for more than you think you’re going to get, which is asking the owner to make the improvements. You can then fall back on doing or paying for the improvements yourself. This may seem like more trouble than it’s worth, but think of how this could translate into your home’s selling price or speed. Spending a weekend pulling weeds could mean a few thousand dollars in your selling price.

If personal negotiations stall or become hostile, you can then check out municipal laws, which are administered through the building department, health department or other similar entity, says Neil Garfinkel, a Manhattan real estate attorney with Abrams Garfinkel Margolis Bergson. For instance, some areas assign fines for keeping piles of wood that attract animals. Keep in mind, however, that getting results can be frustrating, and the government is only likely to act if a property’s condition risks personal health or safety. The process can be long and time-consuming.

It may also help to keep in mind that an eyesore to one person may not be that bad to someone else. Proximity to such a property may present an opportunity to some buyers, while others may not even want to get out of the car. Kina Lane, principal in Sunshine Development Partners, a firm that buys and sellers property, says that urban house-hunters can also be more tolerant of a mix of home styles and conditions than suburban or rural shoppers. She also points out that eyesores can include commercial establishments. Some buyers, for instance, may not want a bar at the corner of the street, while other buyers may view it as a potential neighborhood hang-out.

You should also consider the overall look and feel of your neighborhood and market to the appropriate buyers. For instance, if home styles and conditions are eclectic, work with your broker to post listings in galleries, restaurants and independent newspapers.

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