Homes are one of the biggest purchases and investments for most people, so it is prudent that they would want to protect them at all costs. As a responsible homeowner, it is your duty to boost your home’s value and protect it from factors that may devalue it inadvertently or otherwise. Whatever measures you take to improve your home’s value, it pays to understand the factors affecting your property’s bottom line.
Comparable Listings and Foreclosures
The housing market experiences cycles of highs and lows. If you have tried selling a home during one of the housing market’s lows, then perhaps you are familiar with how difficult it can be to unload a home in a market congested with sellers.
Generally, the more comparable listings in your home’s market, the lesser your property’s value. This phenomenon gets even worse when buyers are scarce, and your property is located in a neighborhood plagued with foreclosures.
Industry reports suggest that each foreclosed house will cost houses within 250 feet roughly 1% of their value. Even worse, foreclosed homes tend to stay vacant, and multiple foreclosures might imply that a neighborhood is prone to general unpleasantness, depreciation, and vandalism.
When taking a random stroll around your neighborhood, what is the first thing that catches your eye? You (and potential buyers) may have first impressions of a home’s value based on its exterior, including the paintwork and yard. If keeping your house coated freshly and maintaining the yard is not high on your list of priorities, then you may be letting your property’s value plummet unknowingly.
Curb appeal is a deal-breaker for many homebuyers and one of the more manageable ways of improving your home’s value. Besides repairs such as damaged siding and a leaky roof, some maintenance issues you should watch out for include:
- Fence quality
- Landscaping trends, e.g., the type of plants in your yard
- Unkempt driveways
Be sure that you keep up with the appearance of your home’s exterior. Consult with a pressure washing company to get a cost estimate for professional services.
Although somewhat overlooked, homebuyers may assess a house’s value based on their interactions with potential future neighbors. If it becomes apparent that you have bad neighbors, many buyers may offer lower prices for your property or pass it altogether.
Older buyers, in particular, may also be on the lookout for annoying pets or machinery within earshot and nearby unkempt lawns. Living less than a tenth of a mile from a registered sex offender can also reduce your property’s value by up to 10%, especially if the potential buyers have young children.
Mold can be a big problem in any home if it’s not addressed promptly. Be sure to address any water damage immediately, and regularly employ a carpet cleaning service to be sure there is no invisible mold. Visible or not it will drive down the price of your home in a hurry if it is detected during a home inspection. Hire a mold remediation company to locate and abate any dangerous mold existing in your home.
Numerous factors go into your home’s worth – location, number of rooms, square footage, and many more. Although some aspects are beyond your control, it pays to know how much your property is worth and what you can do to prevent its depreciation.