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The proverbial "location, location, location" statement applies to property values too. It's crucial that you understand your neighborhood's affect on your home's value before you spend any money on home improvement projects. Read the neighborhood descriptions below, then decide which category best describes your situation when you request your [Potential Home Value Report].
Revitalization
Revitalization happens when a neglected neighborhood's purpose changes or a period of renewal begins. Deteriorated buildings are torn down, and other buildings are converted to more intensive uses. Revitalization usually results from economic growth that increases the demand for housing. Community efforts and historical renovation also contribute to revitalization.
Gentrification
Neighborhood revitalization is sometimes called gentrification, whereby middle- and upper-income people purchase properties in urban neighborhoods to renovate or rehabilitate them. Often the properties are marginal, and gentrification can lead to buildings being put to new uses, such as apartments converted to condos.
Rehabilitation
Neighborhood rehabilitation usually means structural rehabilitation, and can include street improvements and amenities like parks and other community areas.
Decline
It's sad but true: Neighborhoods can go into a state of neglect, and this brings down your property value. Decline is evident when neighborhoods exhibit excessive wear and tear of buildings, dilapidated storefronts, and streets in poor repair. Neighborhoods in decline usually have changing populations too as families and businesses move away into more prosperous neighborhoods.
Your immediate neighborhood
Your home's general neighborhood links to "sub" neighborhood locations and the individual homes, including their style, condition, utility and amenities. These links can be referred to as the "immediate" neighborhood location and can have higher or lower values than the neighborhood as a whole. Only you can determine the state of your immediate neighborhood! And the more accurate your determination and description, the better the evaluation we can offer of your home's potential value.
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The majority of locations not experiencing decline are stable. These neighborhoods are either newly built up or have earlier experienced some realty cycle, such as revitalization. They are now stable or are in a cycle of incline to support home ownership and advancing the local home values.
It's important for all homeowners to understand where and how these links occur in terms of neighborhood value, but it's especially important for you to recognize the impact of your neighborhood on your home's value.
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