There are a lot of factors that have an influence on the value of a house. There are a couple of specific things that real estate agents and investors are looking at to determine the house value. If you know what these things are, you can use them to your benefit. We’ve listed 5 important price decreasing factors for you to avoid, so you can get the best deal when selling your house.
Location of your house
The environment that your house is located in, has a huge impact on your house’s value. You will probably see a significant drop in value if you have loud and unfriendly neighbours.
A high crime rate in the neighbourhood can reduce the popularity of your property even further. Crime levels are very easy to determine online nowadays, even from street to street. This makes it a lot harder to get a good deal on your house if it’s in an environment with a lot of crime.
Having a highway or a railroad track nearby creates noise pollution and decreases the value of your house. The availability of a nearby school is also important for many home buyers. If there are no good schools in the neighbourhood, it might make your house less popular. Research has shown that the lack of a reputable school nearby, can decrease the value of your home with as much as 10%.
Developments in your neighbourhood
It’s a smart thing to keep an eye out on future developments in your home’s neighbourhood. For example, the construction of a new building block or a new supermarket can reduce your property’s value. These developments make the area much more crowded and creates horizon pollution. Prepared home buyers will look into future development plans and it might be a reason for them to lower their bid.
If a certain street or area has more foreclosures than average, it will negatively impact all of the nearby houses. These houses often have a bad appearance and will give people the idea that it’s hard to sell a house in this area.
Research has shown that the value of a house within a 300 feet radius of a foreclosed home drops with an average of 1.3%. This can be a big financial setback for you and there isn’t much you can do about it. In some cases, it could be the difference between selling your house underwater or selling with a profit.
The front and outside area is the first thing people will see when looking at your house. If the maintenance of these areas is bad, it will put people off from buying your house. An outdated kitchen or bathroom can also decrease demand for your house, and therefore the value. Don’t try to save money maintaining these areas and make sure the foundation of your house is always in top shape too.
Most people who are serious about buying a house will hire someone to perform a home inspection. If mold or termites are found during inspection it will scare off a lot of people and investors will offer significantly less. Termites can bring terrible damage to your home’s foundation.
If you keep the maintenance level of your house similar to that of other houses in your street, you should be able to get a good price. If, however, the houses in your neighbourhood are in a much better condition, your house value will suffer from it. In that case you’ve got some work to do.
Appearance of your home
Having a house with a very personal touch to it makes it harder to sell. The group of people with the exact same taste as yourself is probably not that large so it’s better to make your house look more neutral, without any flashy colours. Having wallpaper on the walls can be a turnoff for potential buyers too, because they will have to spend time to remove it and repaint the walls.