unsplash-image-veNb0DDegzE.jpg

There’s a lot to consider when it comes time to sell your house. Plenty of factors, both in and outside your control, can affect your property’s value and impact how much you get for your home. One of the most relevant of these factors is your area’s crime rate.


Generally speaking, the more crime happens in or around your neighborhood, the less your property will be worth. A 2019 study found that housing prices drop by 1.5% for every 1% increase in crime.


Crime’s effect on property value is unavoidable, but why does this happen, and how can you address it? Here’s a closer look.

1. Buyer Safety Concerns


The most straightforward way crime rates impact property value is by raising concerns among potential buyers. U.K.-based insurance firm Churchill found that 69% of potential homebuyers worry about crime in the area they’re looking to buy in. If these people see your neighborhood has a high crime rate, they may look elsewhere.


Given these concerns, high crime drives down demand, which causes prices to fall in response. You should note, though, that not all crimes have an equal impact on demand. Violent crimes like assault and burglary are more likely to scare away potential buyers than things like cybercrime.

2. Insurance Rates


A less obvious way that crime affects property value is through insurance rates. Increased crime rates lead to higher insurance rates. Even if buyers are undeterred by local crime statistics, having to pay more for insurance could turn them away, reducing demand.


Crime raises insurance rates because of the higher likelihood of someone making a claim. Interestingly, this typically only happens with neighborhood crime rates, not a specific property’s history. If a burglary or even murder occurred in your home, it wouldn’t impact insurance rates.

3. Ongoing Crime Cycles


Just as crime lowers property prices, property prices can influence crime. That’s because low prices will attract lower-income individuals, and crime often comes from poverty. Poverty leads to desperation and hopelessness, which in turn drives people to commit crimes. As more people do, the neighborhood’s value will decrease further, starting the process over again.


It’s a tragic cycle and one that compounds the effects of crime rates on property value. Homes in high-crime areas can face continually falling prices because of these patterns.

Accounting for a High Crime Rate


If your home is in a high-crime area, you can take some steps to make the most of it. Some home improvements can help bolster your house’s value and assure uneasy potential buyers. For example, garages are one of the most targeted break-in points, meaning a secure garage door can comfort buyers.


Other security improvements have the same effect. Installing cameras, building fences, and putting in tougher locks can all help calm any fears that buyers have about crime. These may not increase your property’s value, but they will raise your chances of finding a buyer.


You could also try to form a neighborhood watch group. Such efforts have in the past reduced some crimes by 35%, so they can be surprisingly effective. In addition to helping lower crime rates, the presence of a neighborhood watch may comfort potential buyers.

Understand Your Property’s Value


When you understand how crime rates affect property value, you get a better picture of what you can ask for your house. The fairer your asking price, the more likely you’ll be to make a sale. If you’re looking to sell your home, pay attention to your neighborhood crime rates and make any necessary adjustments you can.




Please complete the form to access all the details about Savona Homes in Oakland Park Fl