The "Neighbor Factor"

The neighbor factor-- how much does it help or hurt?  What is the adjustment an agent or appraiser would give ?  President Obama's Chicago next door neighbor has just listed his home.  I laughed when I heard both the owner and the agent comment on "the Obama factor".  Truly, in this context, the neighbor factorhas a positive connotation -- the prestige, the added security, the notoriety.  I laughed because last week while on a listing presentation I ran smack into the polar opposite of the above neighbor factor.  The subject property was very nice.  It was big, updated, and showed beautifully.  But right across the street -- SWEET MOTHER OF GOD!

Right across the street was one of the ugliest, most unkept homes I've ever seen.  There were weeds, buckets, platic swans, pots for plants that overflowed with cigarette butts, and a 2-tone clunker parked whopper-jawed in the crumbling driveway.  Now how much would you pay?

Obviously, with the good neighbor factor you can warm yourself with the knowledge of great fringe benefits that go along with the property.  But what if you're stuck with the bad neighbor factor?  Once while showing a property to clients I had a similar experience.  The home was lovely, location perfect.  But the love evaporated when we stepped out onto the deck.  The next door neighbor's back yard looked like the city dump!  As they say on 30 Rock,  "That's a deal-breaker, ladies!"

So we adjust for square footage, bedrooms, baths, etc.....but what is the neighbor factor adjustment??