Fighting the Neighborhood Eyesore

A Rundown Property Down the Street Can Make Your Home a Hard Sell

Fresh paint, a new front door and colorful landscaping are often surefire ways to tease potential buyers over the threshold of a home for sale. Yet sometimes, no matter how perfect your pansies, nothing can draw their gaze past the tired-looking two-story buried in weeds next door.

More than 60 percent of the 900 people surveyed by contractor-referral site Servicemagic.com said they have or have had neighbors who make the street look bad by not taking care of the outside of their homes. (Twenty-one percent admitted they were culprits.) Common problems: tall weeds and grass, imposing trees or a dying lawn; piled-up junk, particularly old cars; and peeling paint or a visible defect in the exterior, such as a broken window.

Curb appeal, yours and the neighborhood's, takes on greater significance in a nationwide buyer's market. For buyers, eyesores may present yet another negotiating advantage. Remember, appraisals factor in the condition of nearby properties.

Michael Soon Lee, a real estate broker for 30 years in the San Francisco Bay area and author of "Black Belt Negotiating," said sellers near eyesore properties "don't have to have a fire sale but do need to put their listing at a price that attracts plenty of traffic . . . or risk having a home that just sits on the market."

"That is death," he said. "It becomes the tainted house."

The National Association of Realtors said an eyesore can shave about 10 percent off the value of a nearby listing. Most real estate experts, though, stress that there are market-by-market differences that can affect that percentage.

"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. If it's the only house in the area that looks bad, it can have a greater impact on the resale of neighboring homes," said Bob Golden, a veteran Atlanta agent with Re/Max.

Approaching a neighbor can be uncomfortable, to say the least. In the Servicemagic survey, 75 percent of respondents said they had made no direct contact with their neighbors over the issue; 18 percent said they confronted their neighbor and it created tension and the house still looked bad; 4 percent said their talk produced a satisfactory outcome all the way around; and another 4 percent said the problem was fixed but created lingering tension.

Neglected properties are likely to belong to two types of people: those physically or financially unable to keep up with the work and those who purposely buck social norms, said Tara-Nicholle Nelson, a broker and author and the creator of female-focused resource site Rethinkrealestate.com.

Knowing what you're dealing with is the key.

"In 'Black Belt,' we talk about spying on your opponent, true in martial arts and in any negotiation situation," Lee said. In some cases, the homeowner may have just taken on new responsibilities and has fallen behind -- for example, starting a new job -- or is facing unexpected health issues. Bringing your concern to their attention may do the trick. Stress that keeping up the condition of the neighborhood helps the value of all properties. Think: What's in it for us. Not: What's in it for me.

A group effort may pay off. Some local branches of the National Association of Realtors have created funds that help older or incapacitated homeowners keep up their exteriors. Getting other neighbors to rally behind your cause may bear more fruit and may come across as neighborhood improvement projects, not the ranting of a picky neighbor.