This “annoying neighbor” problem keeps getting cited as an example of something that affects housing prices that the automatic algorithms don’t know about, but does it really exist? What is the mechanism by which the potential buyers find out about the annoying neighbor? I’m highly skeptical. I’ve had annoying neighbors before and there is zero chance that any potential buyers knew about them when I sold.
Are people interviewing all the neighbors before making a house purchase? Are those neighbors not incentivized to withhold any negative information about the neighborhood because it affects their own property values?