IndyBeerman
Was a real life Beerman.....
The same house in different areas will sell for different prices. A single house in disrepair will not affect that. Appraised value is based upon what other similar properties have sold for in the general area of the property being appraised.
This is different than saying one property in disrepair has lowered the property value. Unless it is sold for a much lower price. Once sold it can have an affect on the value of other properties like it in that area. This is why foreclosures hurt so much, they are often dumped for low prices, and they drag all the others with them.
Well I'm going to tell you something, all three homes are within 1.5 miles of each other, so it is in the same area. The homes around the third one have never been in foreclosure. All three homes have almost the exact same property size (1.0-1.2 acres). The homes are not in a HOA so that can not come into play the only difference is the fact that the third home has homes around it that have not been maintained to the quality that they should have been.
Anyone who believes that a properties value is not affected by what is beside it is either blind or has binders on so tight it creates tunnel vision.
If you have a pile of house sitting next to yours and people keep offering substantially less money in the range of the appraised value, then one of two things, they hate your house (but they must like it, why make an offer) or it's the next door dragging it down.
Property is affected by what is beside it, home appraised values don't mean , it's what an individual is willing to pay for it, that is what counts.
That third home built like mine, I wouldn't buy it if they gave it to me. Why, because everyday I'd have to look out the window, or when I leave and come home I would have to see that house that looks like , I don't want next to me, that's why I bought my house when I could have bought that house 6 months earlier for $30,000 less.
You yourself even said above unless it is sold for a much lower price. Any prospective buyer will not buy at asking price of near if you know you have an eyesore sitting next to you that has been in disrepair or trashed for a period of time.