A home is an incredibly large investment for many of us — especially in today’s housing market. However, many of us are absolutely clueless about our home’s value and things that can increase or decrease it.
To help you better understand, we have created a list of concerns that can affect the value of your home. So, without further ado, here are 10 things that can decrease your home‘s value.
10 Things that Lower the Value of Your Home
This is by no means an exhaustive list of elements that can decrease a property’s value. This list is a collection of some of the most common (as well as commonly overlooked) concerns.
1. Exterior Aesthetics
When you go to someone’s house the first thing you see is the exterior. This can be broken down into two parts: the yard and the exterior paint. In the housing market, this combination is called “curb appeal”. It is the first impression someone looking to purchase your home will have.
First impressions are crucial in many aspects of life — from buying a house to job interviews to making new friends. Because of this, it is incredibly important that you ensure that your home has a good curb appeal.
Check for chips or other wear and tear on your home’s exterior paint and make sure that your landscaping is both pleasing to look at and low maintenance. Not all buyers will want to invest their time in taking care of their yards — no matter how pretty they are.
2. Interior Aesthetics
After your potential buyers have made it past the exterior of your home they’ll begin immediately taking in the interior. Make sure that your interior is well-lit and free of cobwebs and dust. When people walk into a dimly-lit and dusty space they will immediately feel less welcomed.
Neglected bathrooms can be an immediate turn-off for many people but so can overly renovated bathrooms. This is because oftentimes renovations result in a very personalized product that may not agree with other people’s styles.
Similarly, very old kitchens can fill a potential buyer’s mind with tons of renovations they would need to make, but a super extensive and fancy kitchen may intimidate some buyers — especially if they don’t cook often.
A new paint job is oftentimes a good idea when looking to sell your home, but make sure to avoid very expressive colors. While some buyers may love it, many want to envision the home how they want it to look, and oddly colored walls can make that more difficult.
Finally, while your home is your space to live and relax, if it is cluttered with your possessions and pictures of your family, many potential buyers will have a harder time picturing it as their own. Before a showing, make sure to tidy up and store away some things so that others can more easily picture themselves decorating it how they want.
3. The Neighbors
While you cannot control your neighbors, they can in a sense actually control the value of your home. Having loud, messy, or mean neighbors can decrease the value of your home.
If a potential buyer can see a lack of curb appeal in your neighbors’ houses they are likely to either offer a lower price for your home or not offer anything at all.
Whether potential buyers have (or are planning to have) young children or not, the quality of the schools can dramatically affect their decision to purchase your home or not. It is important to research both primary and secondary schools in your area to determine how they are going to affect your home’s value.
Local schools that are well-run and have good reputations are likely to increase the overall value of your home. Schools that receive negative reputations represent the community and can decrease the value of your home.
5. Crime Rate
New families want to know they are moving to a safe neighborhood. It is important to be aware of the crime rate in your neighborhood. We know your neighborhood crime rate isn’t in your control. But it’s important to be aware of what can affect your home’s value.
6. Major Repairs
If your home needs a serious repair (or multiple serious repairs) it is usually best to get those repairs done before selling your home. This is because large repairs — such as leaky roofs, plumbing issues, AC or heating system malfunctions, or mold problems — will most certainly become a point of concern for any potential buyers.
This will lead, oftentimes, to a dramatic reduction of your asking price and can lead many buyers to simply not offer if your home is too much of a “fixer-upper.”
7. City Dumps and Power Plants
The presence of city dumps and power plants is enough to discourage buyers from buying a property in that location. Because of the pollution and potential EMF radiation dangers of being near those areas, many people will immediately dismiss properties close to them.
8. Foreclosed Properties
Foreclosed properties near your home can easily make the location feel less welcoming. These properties can dramatically decrease the value of your home — especially if they are very close by.
9. Similar Houses For Sale
This is simply the issue of supply and demand. Multiple homes available that are similar to yours in your area will drive down the demand for your property. This will decrease the value of your home. Check what other homes in your area are for sale and create your listing price according to what price range is realistic in your area.
Many people do not like living in areas that are loud — especially families with children and elderly people looking for a new home. Because of this, living in an area with a lot of noise — such as near train tracks, busy streets, a highway, or an airport — can be an immediate turn-off for many potential buyers.
We hope that this list of 10 things that can decrease your home’s value helps you to more accurately determine the general value of your home — whether you are looking to sell it, you’re looking to buy a new home, or you’re just curious. For more information about homes and the Fresno area, check out our blog!