A dispute with your neighbor can range from a slight annoyance to an all-consuming legal affair. That’s bad enough on its own, but it’s made worse by the fact that neighbor disputes can negatively affect property value in California.
It may be hard to believe, but it’s true: Even minor disagreements with your neighbors can have a very real effect on the value of your property.
And you may think: “I simply won’t tell a potential buyer about the dispute. Problem solved.” But if you think that, you’re likely wrong. That’s for two key reasons:
- You can’t always control the narrative.
- You legally have to disclose certain types of neighbor disputes.
Ready to learn more? Keep reading, or reach out to Estavillo Law Group for tailored legal assistance.
Common Types of Neighbor Disputes
Neighbor disputes can and often do have an impact on property value in California. But which kinds of disputes? In our real estate and foreclosure law practice, we’ve seen countless unique neighbor disputes, but these are some of the most common kinds that can affect your property value:
- Boundary disputes, including fencing and property line disagreements
- Driveway access, easements, parking, and similar issues
- Animal-related disputes
- Noise complaints because of frequent loud sounds like parties
- Tree root or branch encroachment and similar landscaping disputes
- Light pollution disagreements, usually related to security lights
- Disputes related to lengthy or disruptive construction projects
- Drainage disputes about runoff or flooding
This is by no means an exhaustive list of neighbor disputes that could affect property value. But if you have experienced any of these or similar issues with your neighbors, consider reaching out to Estavillo Law Group for guidance about how these issues may affect your property value — and what you can do about them.
Impact on Property Value
There’s no doubt: In California, neighbor disputes can have a significant effect on your property value.
But let’s take a more detailed look. Here are some of the key ways a dispute with your neighbor can reduce your property value.
Inability to Legally Sell
In some cases, you may be legally unable to sell your property until a dispute with your neighbor is resolved. That’s most common in disputes that have led to pending litigation or similar legal action.
If you can’t sell your property, the value may remain the same from a technical perspective, but to you, it’s worthless until you’re able to sell it.
Negative Sentiment
The truth is that many potential buyers of your home will go next door and talk to your neighbors. They’ll ask about the neighborhood and just make a simple introduction.
But if you have a dispute with the neighbor the potential buyer speaks to, the buyer is likely to hear about it. That’s going to create a negative sentiment about your property.
While it’s not a direct impact on the property value, you’re unlikely to sell your property to a buyer who has heard about this dispute at full price.
Expect a downtick in value from this simple interaction. The Appraisal Institute has warned that so-called “bad neighbors” can reduce the value of nearby homes by as much as 10 percent.
Nearby Foreclosure
If your dispute with your neighbor is arising (in part or in full) from financial issues your neighbor is experiencing, their home may be foreclosed on in the near future. And that can have a measurable impact on the value of your home.
Just take this in: If you live within 300 feet of a home that has been foreclosed on, you can expect the value of your home to drop by 1.3 percent on average. That’s according to The New York Times.
Unsightly Evidence of Tension
If your potential buyers can see evidence of the tension with your neighbor, they’re unlikely to pay full price for your property.
What kind of evidence might the buyer see? Imagine you’re having a dispute with your neighbor over their lawn care (or lack thereof). To stick it to you, they decide to stop mowing altogether, making their suburban yard look more like a dense jungle.
That’s hard to hide. And it’s hard to overlook if you’re a potential buyer.
Aggressive or Antisocial Behavior
The most acute neighbor disputes sometimes drive neighbors to behave aggressively or antisocially. They may attempt to intimidate you or a potential buyer — or just simply refuse to speak with a buyer who comes knocking.
That’s going to have an effect on the value of your property — and not a good one.
Strategies for Resolving Neighbor Disputes
You may feel helpless right now, but there is something you can do about your neighbor dispute — and therefore help protect your property value.
There is no one-size-fits-all solution for all neighbor disputes, but many of these strategies apply to even the most severe neighbor disputes.
Feel free to try them out, but when in doubt, always speak with an attorney before doing anything that could affect the value of your home or worsen an ongoing dispute with your neighbor.
- Communicate. Don’t shut down, even if you’re averse to conflict. Communication is how disputes are solved.
- Stay calm. You may be angry, but it’s important to remain calm. This will help you think and help your neighbor stay calm, too.
- Keep records. Write down what’s happening. Take photos and videos. This can amount to proof to your neighbor that they are in the wrong — or evidence should your dispute lead to legal action later on.
- Consult official records. Check out survey records for property line disputes. Consult homeowners’ association (HOA) agreements for all kinds of other disputes.
- Consider mediation. Mediation involves a neutral third party hearing both sides of the issue and helping you and your neighbor reach a fair resolution.
- Write it down. If you reach any kind of agreement with your neighbor, write down that agreement. Talk to your attorney about asking your neighbor to sign the agreement to make it official.
- Pick your battles. Some disputes are worthwhile. Others are most certainly not. Weigh the potential benefit of resolving the dispute against the stress it will cause you (as well as the impact on your property value).
- Speak with an attorney. It can’t hurt to talk to an attorney. The team at Estavillo Law Group is ready to hear your side of the story and help you get it resolved fast.
Worried About a Neighbor Dispute? Call Estavillo Law Group
Disputes with your neighbors aren’t just stressful — they can have a real impact on your property value. There’s no reason to sit back and let that happen, though.
Estavillo Law Group is just a phone call away. We’re ready to help California property owners like you resolve disputes and protect their property value.
To get started, call us at (510) 982-3001 or contact us online to schedule a free phone consultation.