More often than not, poorly maintained property tends to decrease in value. However, low maintenance is not the only reason why property decreases in value.
- 1 Why your property may lose value
- 1.1 A bad history
- 1.2 Proximity to fast-food chains
- 1.3 High crime rates
- 1.4 Myths and superstitions
- 1.5 Noise and air pollution
- 1.6 Closeness to mobile phone towers and wind farms
- 1.7 Areas prone to floods
- 1.8 Illegal home improvements
- 1.9 Structural or water damage
- 1.10 Poor property maintenance
- 1.11 Economic trends and nationwide issues
- 1.12 Location and type of neighborhood
- 1.13 Low-quality exterior paint
- 1.14 Bad Neighbors
- 1.15 Neighborhood Foreclosures
- 1.16 An Unkempt yard
- 1.17 Converting your garage
- 1.18 Carpet floors
There are many factors that affect your house value negatively. If you are house hunting, always look out for these factors before making the final purchase.
Why your property may lose value
In this article, we look at some of the factors that bring down property value.
A bad history
Houses that have a bad history tend to have a lower value. For example, houses known for past cases of murder or haunting have less demand. So, they are often lowly priced. Based on previous research, homes with an unpleasant history cost even less than $100,000. Before purchasing a property, ensure that you know its history. Nevertheless, in some cases, it’s all about superstitions. Conduct thorough research on the house you plan to purchase, regardless of whether it has a bad history or not.
Proximity to fast-food chains
Properties close to Primark and McDonald’s have a lower value. Recent studies prove that living near fast-food chains lowers your property’s value by approximately 24%. So, if you are looking to buy property, ensure it is not close to McDonald’s or any other food chain.
High crime rates
Areas with high crime rates are generally unsafe. Thus, very few people buy houses in such regions. Homes around these places are often cheaper due to low demand. The majority of individuals are not comfortable living in areas with high crime rates. Although there are many ways of dealing with crime, experts advise choosing a safe location for your house.
Myths and superstitions
Did you know that superstition bring down property value? According to previous statistics, house hunters believe that the number 13 carries bad luck. Some property owners are forced to accept low proceeds for houses associated with the number 13. As the seller, you are likely to receive 4% less when selling a home associated with the number 13.
Noise and air pollution
One of the main factors that determine the value of a house is the area’s environmental conditions. Places affected by noise and air pollution have low-value properties due to low demand. Individuals with small children cannot buy properties affected by air and noise pollution. Most people get attracted to quieter and serene places. Additionally, properties located near a busy highway or railway line carry low value.
Closeness to mobile phone towers and wind farms
Real estate experts report that houses located near wind farms and power lines are of lower value. According to previous surveys, these houses have a value of 13% less than others. Typically, the majority of individuals don’t like living near such systems for the sake of safety.
Areas prone to floods
Property located in flood-prone areas has a lower value. This is because they are at risk of damage. More often than not, these properties have low demand. Thus, you can find them at a lower price. Buying property in flooded areas is not worth the risk.
Illegal home improvements
Going against the legal guidelines when constructing your home can significantly devalue your home. At times, homeowners install certain home extensions to boost the aesthetics of their house. But this can be dangerous if you go against the state construction guidelines. If caught, you would have to pay huge penalties. Moreover, not many people will be interested in purchasing your house. And even if they do, they will give you low offers.
Structural or water damage
Buildings that have structural cracks, mold and water damage can put off a lot of potential buyers. Surface cracks can indicate structural damage, and this can scare buyers. If your property encounters such a problem, it would be best to fix it before putting it up for sale. Otherwise, you would obtain meager proceeds from it.
Poor property maintenance
In real estate, first impression matters. A prospective buyer can make their purchase decision immediately after they see the exterior surroundings of the property. So, avoid abandoning your property. Spare some time to clean and declutter the whole compound. Do this at least once a week. This way, you can be confident when you take your customers around the house. Also, get rid of any bad odors. Use baking soda solution to eliminate bad smells.
Economic trends and nationwide issues
The state of the economy also plays a huge role in affecting property value. When the economy is not doing well, property value decreases by approximately 8%. Also, base rates and national guidelines can devalue properties. Market prices keep fluctuating due to certain economic conditions. Before purchasing/selling property, consult a real estate expert. They will help you know the best time to buy/sell your property. Consequently, you’ll be able to obtain huge profits.
Location and type of neighborhood
A developing neighborhood increases the value of your property. Conversely, environments that are constantly degrading lower the value of your property. For instance, if you have a studio apartment in an area with many family houses, few people would want to buy your property. Likewise, if your property is in a place where people are moving out due to pollution or crime, your property is likely to decrease in value.
Low-quality exterior paint
Faded and cracked paint can also turn off potential buyers. Consider repainting your house afresh before putting it up for sale. Otherwise, you would have to lower the price to get a buyer. Also, using odd colors to paint the exterior of your house puts off buyers. Neutral and subtle shades are ideal for painting the exterior of your home. Examples of subtle colors include white, gray, and cream. Consult an interior designer if you don’t know the best colors to pick. Also, repaint the house if the color starts fading. Remember, you want to portray an excellent first impression.
People who live around the neighborhood can also lower the value of your house. The majority of people prefer peaceful and tranquil living environments. So, if your home is located in an area known for wild parties, you are likely to have a small buyer pool. Thus, you will have to lower the selling price of the house.
A foreclosure can also devalue your property. When people fail to pay their debts, the respective financial institution or bank takes their home and sells it at a throwaway price. Also, foreclosed homes deteriorate after some time. And this lowers their value.
An Unkempt yard
Poorly maintained yards can decrease your property’s value. If you are selling your property, don’t forget to keep your backyard in good shape. Get rid of all the weeds and trim the fence to make it look appealing. Clean the yard from time to time. Consider hiring a professional to clean the yard at least once a week, especially if you have a busy schedule.
Converting your garage
Modifying your garage into a guest room or playroom for your kids will undoubtedly lower your property’s value. This is because most people often want a space to park their car or store their extra equipment. If you plan to sell your house, restore the original state of your garage. This way, you won’t have to lower your selling price to accommodate your buyer pool.
Installing a lot of carpet flooring lowers the value of your house. You would rather go for hardwood or laminate flooring. This type of flooring not only boosts the aesthetics of your home but also keeps the environment warm and cozy.
Keep your property valuable
Many factors bring down property value. Some of them include pollution, illegal home extensions, poorly maintained houses and bad neighbors. All these factors lower the selling price of your house. So, before selling your house, ensure it is in good shape. Otherwise, you would turn off potential buyers.