Owning a home is an investment, and when you are looking at purchasing a home or selling a home, there are various things that you can do to increase the value of your home.
However, keep in mind that there are also things that can lower the value of your home. Unfortunately, some of these things are location-based and completely out of your control. It’s a good idea to keep these things in mind when buying a house if you’re not planning on living in it forever.
Here are 5 things that can potentially lower the value of a home:
1. Poor Education Systems
Education and schooling systems are one of the number one things that people look for when purchasing a home. This is typically a top priority, because living within the school district that they want to send their kids to.
Neighborhoods where schools aren’t performing as well see home values decrease, because people aren’t willing to pay as much for homes in a less educationally-attractive area.
Education is something that affects the area’s safety typically as well, schools that have poor attendance and graduation rates have more dropouts and more crime statistically in the area.
Schools with higher graduation and attendance rates produce more business-class families, which in turn raises the price of homes and desirability of the area for young business professionals.
2. Atypical Renovations or Colors
When renovating a home, people typically are changing and adding elements to the home that are specific to their individual needs and wants. However, it is important to take into consideration if other people will find this unnecessary and want to take it out in the future.
Adding elements to a home that are not common and are very specific for one person can decrease the value of the home.
This is because buyers will likely think it is odd or unnecessary and want to take it out. This means that they will be willing to pay less for the home because they know that changing the odd renovation will cost them money.
Unusual paint colors in and outside of the home are another thing that can make the value of the home diminish. Getting a house painted – especially on the outside – isn’t cheap, and the buyers will factor this into their offer price. While you may love having your house painted neon pink, you might want to consider repainting it a neutral common color before listing it for sale.
Homes that are near giant billboards are less desirable than homes that are not. This is because billboards can be unsightly and are a big distraction.
Homes that have rules around placing billboards near houses typically have more resale value.
4. City Dumps, Power Plants, and Fracking
These infrastructures are not only potentially harmful to the environment and air, but they are things that most homebuyers would like to avoid living nearby.
They are unsightly, potentially have bad odors connected to them, and can be hazards. In addition, fracking is controversial and may be unpopular with people who are looking to move to the area, which can cause them to look elsewhere.
Fracking is also a threat to drinking water, which many people are wary of and choose to avoid.
5. Nearby Foreclosures
When a property forecloses, nearby homes are negatively affected for a few reasons. When a real estate agent lists a home, they typically rely on recent sales prices of nearby homes to arrive at an asking price for their new listing. Appraisers also look at recent transactions in the neighborhood in their various methods of appraising a property.
Foreclosures also have the potential to lower a home’s value because it can change the way buyers perceive the neighborhood. Some houses remain abandoned for months or even years. The longer they remain empty, the more of an eye sore they become. Even if there’s no big red “foreclosure” sign in the front yard, the lack of lawn maintenance makes an obvious statement.