The Impact of Crime On Property Values

Real Estate Realtor Crime

Broken glass, shattered lives.

The direct and indirect impacts of criminal behavior are challenging to verify.

The direct impact to the victim can be determined in various ways, monetary costs, time lost and sadly, even in loss of life. Indirect costs impact property values, tax revenue and stigma that are hard to get over.

DIRECT & INDIRECT COSTS OF CRIME

Monetary costs to the victim are those of replacement of stolen or damaged items and increased insurance premiums. Loss of time can be categorized as hours on the phone with the insurance agent, working with law enforcement, and boots on the ground searching local pawn shops in an attempt to recover lost items. Too often, the ultimate price is paid, the loss of life.

Indirect consequences of criminal behavior, as it relates to property value, can be challenging to pin-point. However, in general, one can assume that property values will decrease, loss of tax revenue will be realized, and depending on the severity of the crime, a stigmatism that is challenging to overcome.

SEX, CRIME & VIDEOTAPES – OK, PROPERTY VALUE

Let’s face it, folks want to feel safe. Home is your sanctuary, a place to unwind, enjoy an evening bar-b-que with friends and family or relax with a glass of wine at sunset. According to Martin Maximino of Journalist Resource, crime effects property value by as much as 10%, depending on the severity of the crime. Loss of tax revenue can be felt through decreased city services such as park and recreational services and community planned events.

Perhaps the most costly effect crime has on property value is when the death of an occupant, by murder or other heinous crimes, occurs. These types of event lead to the property being ‘tagged’ as a stigmatized property. In some states, this information must be reveled in property disclosures, making difficult to sell the property. Crime causes a ripple effect that impacts the entire neighborhood, which can ultimately be felt city-wide.

WHAT CAN I DO? – Funny You Should Ask

 

Get involved with your community, get to know your neighbors, plan a Neighbor Night party.

The National Neighborhood Watch program began in 1972 working to unite law enforcement agencies, private organizations, and individual citizens in a nation-wide effort to reduce crime and improve local communities.

Ultimately, a little effort by you, your neighbors and local law enforcement can make your neighborhood and home safer. Safer neighborhoods and safer homes equal higher property values. You do the math.

Sources:

https://journalistsresource.org/studies/economics/real-estate/the-impact-of-crime-on-property-values-research-roundup Martin Maximino of Journalist Resource

National Neighborhood Watch program resources

https://www.nnw.org/

https://nnw.org/find-a-watch-program

http://www.nnwi.org/

 

For more useful tips visit http://ecferrari.blog.realtybooksource.com

If you’re thinking of buying or selling, give me a call at (254) 747-1602. I’d love to help.
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