You probably already know that sex offenders can impact the value of some homes. However, especially if you own more of a luxury home, you might wonder whether this is something that will persist even for luxury homes. Does the presence of a sex offender have an impact on every home, or is it just certain homes? Here’s what you need to know about sex offenders affecting real estate value for luxury homes.
The Real Impact on Housing Prices
It’s important to remember first of all that sex offenders don’t tend to impact home value by fixed amounts. Instead, they tend to impact home value by percentages, which can be a much different story, especially for luxury houses. As a matter of fact, you may even see a bigger impact on a luxury home’s value as opposed to a normal home. That’s because a percentage of a home valued at $150,000 is much different than the same percentage of a home valued at $500,000.
The Proximity of a Sex Offender to Your Home
One thing to note is that the proximity of a sex offender to your home will likely change how much the offender’s presence impacts your home’s value. On average, living within a 0.1-mile radius of a sex offender drops real estate value by about 4%, which is a devaluation of $20,000 on a $500,000 house. However, if a sex offender moves in right next to that same $500,000 house, the home value could drop by about 12%, which is a whopping $60,000 devaluation.
Bouncing Back to Normal
The good news is that once the sex offender moves out, it’s likely that your home’s value will bounce right back. This is one reason you don’t have to worry about your home valuation, especially if you’re not interested in selling right now. Home appreciation still exists in these markets – as the economy continues to move and change, your home’s value will still rise, even if it’s impacted by that percentage devaluation from living next to or near a sex offender.
Crime Problems in General
One of the more important elements of understanding home value has to do with overall crime, which is something that luxury homes very rarely have to worry about. Most luxury homes are in areas with very low crime rates, which tends to boost their home value overall. Crime rates are much more difficult to change than the presence of a sex offender, which means it’s important to look at the area as a whole more than the individuals.
When you own a luxury home, you shouldn’t worry too much about sex offenders when it comes to home value. Of course, you always want to be safe for yourself and your family – looking up more information on the people around your home should be something you do to keep yourself safe. However, overall, it’s not really a big component in your home’s long-term value. Use information about sex offenders from public records search engines to keep yourself safe, not to understand your home’s value appreciation.