What Factors Bring Down Property Value?

property value

Property values fluctuate depending on whether economic factors make it a buyer or seller market. Changes in interest rates, a rise in unemployment, and poor municipal management are out of your control.

You know that you can’t change the location of your home or unsightly neighbors. Yet, you can focus on features of your home that you can improve to increase your property value when planning to sell your home.

Learning about factors that can lower home value is an important first step before putting your house on the market.

If you’re looking to sell your home, you’d be surprised what could affect the property value. Here are five factors that will negatively impact the sale of your house.

1. Property Maintenance

Maintaining a home is an expense that pays off in the long run. We’re not talking about updates or the latest trends. Maintenance means keeping the house neat and in working order.

A home can be in a great location, but the property value will drop if it hasn’t been appropriately maintained.

Have a look around your home and use this checklist as a guide for evaluating home maintenance issues that you could fix:

  • Broken sections of exterior (gutters, shingles, windows, etc.)
  • Cluttered yard
  • Unkempt landscaping
  • HVAC, electrical, or plumbing problems

Many maintenance issues require more elbow grease than money. Decide which issues you can tackle with the least expense. 

Do you have expensive repairs that need to be done? It may be worth your time to consult a real estate agent before making decisions about expensive work.

Find out what your home is worth. Ask if making the repairs will add value. Would it be better to sell the home as it is? 

2. Curb Appeal

Did you know that homes that look well maintained and inviting sell for an average of 7% more?

Maybe, more importantly, many homebuyers will not even leave their car to look at a house that shows little investment in the exterior. If they do not even get out of the vehicle, your home may sit on the market for years.

Curb appeal is much more than just tidying up the yard or putting on fresh paint. 

Do a little research and talk to your real estate agent about trends in exterior appearance that sell in your area. This could be about paint colors, entrances, and landscaping that compliments the style of the neighborhood. 

3. Illegal Improvements

Building an addition on your house may offer more square footage, but you can expect to lose property value and maybe a total sale if the work has not been done correctly.

Homebuyers who are not DIY experts will not want to fix construction issues.  A homebuyer who agrees to replace construction that does not meet building code requirements will factor that cost into the purchase price. You could lose thousands.

When making improvements to your home, always follow your local government’s requirements for permits and inspections. 

4. Outdated Fixtures and Appliances

It has long been stated in real estate that the kitchen sells the home. Research shows the importance of the kitchen. According to Realtor.com, 69% of homes listed on their website mention the kitchen in their descriptions. 

Americans like their kitchens. Many see the kitchen as the hub of the home. Not only do we cook there, but often families gather in the kitchen and children do their homework there.

You can see this love of kitchens in open concept homes where the kitchen is the focus, and other areas of the house are viewed from the kitchen.

Your home may not offer soaking tubs or other trends in bathroom fashion, but it must be clean and safe. A homebuyer that sees bathrooms that look dingy may be wary of using the facilities and quickly lose interest in an otherwise great home. 

If you make any significant improvements before listing your home, consider spending your investment on the kitchen and bathrooms.

Consider the following improvements to fixtures and appliances:

  • Keep colors neutral
  • Replace appliances that are over ten years old
  • Refinish dirty cabinetry or replace
  • Update cabinet hardware

You can also schedule an appointment with a local realtor to do a walk-through inspection of your kitchen and bathrooms. Ask for recommendations on appliances and fixtures that are featured in homes that are selling well in your location.

5. Technology

You may have never considered how technology can affect selling your home or its property value. 

Consider this. The majority of homebuyers are Millennials.

Technology is a home selling factor. Millennials are looking for homes with access to high-speed Internet, intuitive appliances, and smartphone-operated security systems and lighting.

Since the pandemic, many homeowners are now working from home. Industry leaders have found that having employees work from home can be done and is cost-saving. 

Millennials have been raised on technology. A home with features that make checking on the house or working from home an easy experience will have value to these buyers.

Find Out Your Home’s Property Value

Before listing your home to sell, find out what your home is worth. Revisit the tips in this guide for advice on investing your time and money when preparing your home for sale. 

Visit our blog page for more helpful advice on maintaining your home’s property value.

Are you ready to sell your home in Alexandria, VA? The LizLuke Team has two decades of professional experience in making the sale of your home a hassle-free and straightforward process. Talk with an agent today!