Factors That Can Reduce Your Home’s Value

Factors That Can Reduce Your Home’s Value
The most common theme that home sellers research for increasing their home’s value is home improvement. This is a sensible thing to do, if you are looking to attract prospective buyers; however, we seldom research pitfalls that can reduce home value. Whether you are a seller or a buyer, thinking with this paradigm can help you steer clear of counterproductive decisions. Let’s delve into some common factors that can work against your home value.

Bad neighborhood Considering property only and ignoring the neighborhood is not a wise thing to do. The cliché “location, location, location” makes a lot of sense, as this parameter does apply when people look to buy a home. So don’t ignore the larger perspective; neighborhood can play a crucial role in contributing to a home’s value.

Presence of many similar houses for sale in a neighborhood If your house is similar to multiple houses available for sale in the neighborhood, then your house loses the edge of standing out among them. During times of lower or stagnated demand, your house can lose its value. First and foremost, being realistic is advisable; and then you can get an idea about the correct upgrades needed to make your home more valuable to buyers.

Presence of substandard quality schools in the neighborhood Buyers who want a home for settling down with a family will point out this demerit. No parents want to send their children to a low quality school, so a house located in a neighborhood with substandard schools will not interest buyers with kids. On the contrary, if your neighborhood has good quality schools, your home value will rise for buyers who have kids.

Power lines, power station or city dumps in or around the vicinity Be honest! Will you ever make a conscious choice of selecting such a place for your residence? Your answer will be “NEVER.” The mere sight of these will turn off any prospective buyer who has other options. To sell a house in such vicinities requires reducing the value. Pollution and its associated health hazards will always make such a home the last, desperate choice for buyers.

Lack of good amenities around your home No matter how good the infrastructure of your home may be, if the vicinity lacks good amenities, your home value will take a nasty hit. Buyers always want the best deal. If the money they are spending doesn’t cater to their overall needs, then the deal will not happen in the first place.