These eight areas play a significant role in the market value of your home. Some factors may surprise you.
As a home seller, you need to be aware what increases the value of your home. Perhaps more importantly, you need to know what additions and problems actually lower that value. With that in mind, here are eight value-decreasing things to watch out for.
Poor Garage Space
Having no garage, or a tiny one-car garage, is a big negative in the home market. Most people want the storage space a garage provides. No garage means the car sits naked in the driveway open to the elements. Many modern families have two working adults and thus two cars, so a single-car garage is inconvenient.
A pool might not automatically decrease the value of your home. On the other hand, it imposes strict limits in your potential buyers. If they don’t want a pool, they aren’t going to pay a premium to have it. If the home is in a location where a pool is expected, it won’t add much value at all.
Out of Date Appliances
Most homebuyers don’t want to turn around and invest in all new appliances the moment they buy the home. They’re strung out financially as it is. New appliances are a value addition. The same goes for an outdated electrical system. Old wires can even become fire hazards if they were improperly installed. As a seller, you’re not saving money by leaving old appliances in place.
Roofs are time consuming and expensive to replace. A bad roof is a major flaw for any home, and it will drastically decrease the value of the home. You may think you’re saving money by leaving the problem for the new homeowners, but the lower sale price isn’t worth it.
If a buyer is interested in your home, they will probably order a home inspection. If this inspection finds mold problems, asbestos or even lead paint, the health hazard becomes a major issue. The buyer won’t buy until it’s cleaned up, unless the price is drastically slashed.
There’s not much you can do about your location, but it can have a series effect on home prices. Too close to a highway, too many unsightly utility installations and even crime statistics will lower value.
If your home has too many things on the to do list, it’s a turn-off for most buyers. Unless they’re specifically looking for a fixer-upper, they aren’t interested in the work you need to do. They want to move in to a finished home.
You’re saving money by ignoring exterior paint and rooflines. You’re also decreasing your value right off the bat. It doesn’t matter how nice the interior of your house is if the buyer never gets out of the car.