Red Flags to look out for:
Spotting a neighborhood on the decline is not rocket science. Here are some things to consider:
An increased number of short sales, foreclosures and vacant properties is a concern.
The number of rental properties in the area
– Rentals may not indicate anything bad for the neighborhood now – but it could down the road. If a property is not owner-occupied and owner-maintained, it has a higher risk of not being well cared for, and that negatively affects neighboring property values.
A general lack of property maintenance
– Overgrown lawns and shrubs, things scattered throughout the yard, garbage bins not taken in, are other observable red flags. Even how congested a street is with parked cars can signal a neighborhood’s downturn.
Don't just look at the parking
– look at the parks. The appearance of a park can tell you a lot about a neighborhood. Parks are among the most telling signs of the condition of a neighborhood. In areas where the infrastructure is strong, and where residents are involved and take care of the neighborhood, you’ll be able to see it through the condition of the park.”
Don’t go overboard worrying about the neighborhood you choose, because any neighborhood you buy into will eventually change whether you like it or not.
Still, selecting the right neighborhood is important. Your neighborhood's character will shape your family's character.
Remember, the old adage "location, location, location" is around for a reason. You can always change a house, but you can't change its location. Ignoring the neighborhood, and your neighbors because you really love the house, is something you may end up regretting in the future.
Things to look for around the area or next-door neighbors
Property Upkeep
– Look for signs of disrepair and neglect. Make sure you look at all the homes surrounding your potential buy, as well as homes down the street and behind your property. Look for uncut grass, garbage and other clutter left in the yard, and weedy flowerbeds. Also, look closely at the homes and buildings around you. If they look like they're hurting for some love and care, that could be a red flag. The neighborhoods in your price range might be full of modest, older homes, but the yards and the exteriors of the homes should indicate pride of ownership.
People
– Who wants to listen to yet another frat party at 2am Friday morning? Bad neighbors don't just neglect their property; they can also have no consideration for other people in the neighborhood. If you're buying in a college town, or in a neighborhood where there are already lots of rentals, be aware that you may have to listen to more than your fair share of loud music and late-night parties. Inspect the neighborhood during the day, and make sure to also drive around the neighborhood at night.
Look for signs such as one house having a lot of cars parked outside and front porches dotted with sofas, recliners, etc. Bad neighbors might also ignore their pets, and no one likes listening to a barking dog all night. When you're house shopping, keep an eye out for neighborhood pets. Are they tied up outside, or in a small fenced area? Do they look like they're taken care of, or are they being neglected? A neighbor's pets offer an important clue to how good, or bad, a neighbor is likely to be. It can be helpful to talk to other homeowners in the area to find out about their neighbors.
Homes in Foreclosure and Vacant Buildings
– Absent neighbors and empty buildings can also bring down property values in the neighborhood. Neighborhoods with stores that have gone out of business and schools that have closed do not reflect a growing, prosperous community. Furthermore, vacant buildings encourage a variety of nefarious activities that you do not want in your neighborhood.
Zoning Changes and Development Plans
– Zoning laws and plans for development can negatively impact neighborhoods. For example, are residential homes mixed with commercial buildings or mobile homes? Do any of the homes have poorly built additions?