What Factors Decrease your Homes Value?
We’ve touched a lot on how to give your property value a boost when it comes to exterior & interior tips. There are many other factors that can negatively affect your home's value; some that you have control of and others that are completely out of your hands. You should know what you’re getting into before you purchase the home so when you're on the other side of the transaction as a seller these factors won't send your home value plummeting into the ground.
The neighborhood you live in determines that value of your home in both controlled and uncontrolled ways. Lots of foreclosures can make buyers suspicious about the area no matter how nice your home is. This also includes when more homes are on the market in the area making it harder to differentiate yours from the rest. In this case it's easier for buyers to devalue your home when comparing it to others in the neighborhood. A highly uncontrollable factor of your neighborhood is its physical location to undesirable establishments and high traffic areas. Be aware of the condition your neighborhood is in at all times so you can get the most bang for your buck before the neighborhood takes your home’s value down with it.
A more obvious factor that devalues your home is the school district. The schools in which homeowners send their kids are most important when thinking about their children’s safety and education. For this reason, the district definitely matters. It is especially appealing to families with younger children transferring as they begin their education in a system that will likely develop their knowledge and skills for many years to come.
Your next door neighbors play a vital role in your homes value. They have the ability to drag the value down when their home negatively portrays that of a hoarder. Some buyers will go as far to dig into the registered sex offenders in the area to ensure their kids are safe. This is a factor that is often highly considered by buyers.
Ok, Ok so you’re right about upgrades if you’re thinking how beneficial they are to increasing your homes value, but they can also become detrimental so don't over-do it! Consider the maintenance and upkeep of each project to avoid unnecessary and elaborate updates that don't fit the flow of the house. Try to keep the interior warm and welcoming rather than odd or interesting. The combination of printed walls and wild rugs don’t appeal to mass of buyers who will walk through your door. There is a point when your home can become over updated.
Are you too close? Buzzing power lines are a huge turn off to buyers from the moment they look out of the window and discover their proximity. This particular factor is not in your favor and it's uncontrollable in the grand scheme. The qualities that power lines bring from right outside the window are often bad qualities that homeowners can see affecting them in some way or another. There is high criticism surrounding the noise of power lines and supposed health concerns. The bottom line is, looking out of your window to a thick power line is not top priority on a new homeowner's list. Consider this factor when purchasing your next home so you don't loose out on getting top dollar for the home when it comes time to sell.
Most people don't prefer living close to them. The obvious is that trains are loud. Unless this is a buyer's dream home there is nothing dreamy about being woken up at night. While you may have gotten used to the noise, the thought of interrupted sleep does not sound appealing to those foreign to the disruption. Trains are also big safety concerns for families who have kids playing outside in close proximity.
All of these are highly valued factors that have either been under appreciated or have evolved over time to decrease the value of your home from where it used to be. From the small fixes to the larger projects that take more time, pay attention to all aspects of your home’s value and catch it before it slips away.