Real estate as a multi-dimensional package of goods and services extends beyond shelter. It includes environmental amenities such as waste disposal, water and electricity supplies, neighbourhood roads and other locational services. Consequently, real estate values are readily influenced by residents' willingness to pay for both the structural characteristics of the shelter as well as neighbourhood characteristics where the real estate is located. This study used a two-stage hedonic model to examine the willingness to pay for better environmental services by residents of two neighbourhoods in Akure, Nigeria. The study has identified households' income, distance away from waste dump site and regularity of electricity supply as the major significant factors that influence the households' willingness to pay for better environmental services. In this respect, the study has recommended the economic empowerment of the people, diligent consideration in the location of waste dump sites and the adoption of some form of Public-Private Initiative in the provision of public infrastructure.