Buying property is an investment – but it can also be a risk. At Mitten Made Properties, we’ve seen homeowners lose money when their property values decline for various reasons. Some are preventable, and some are totally outside of their control.
To help you protect the future return on your home, we’ve put together a list of factors that can hurt its value. As a homeowner, you can take action to manage some of these, while others are important to be aware of before you invest – or if you are pricing yours to sell.
Termite damage, wood rot, frayed electrical wires, leaky plumbing, a damaged HVAC system, and similar problems will lower the desirability and selling price of a property. While keeping up your property costs money in the short term, it will definitely pay off in terms of your home’s overall value. Consider the cost of hiring an exterminator to rid your home of termites now, weighed against the cost of ripping out drywall or siding and replacing the wooden structure of your home later. Routine upkeep is far less costly than the major repairs that will be necessary if your home falls into disrepair.
DIY Home Improvements
It’s not necessarily bad to tackle home improvement projects yourself, but it’s important to make sure that all the changes that are made are up to code. Otherwise, those “improvements” could end up lowering the value of your home. When you go to sell, an inspector will check over your work, and if it doesn’t meet legal safety standards, you may be responsible for fixing it before the sale. Whether you’re adding a deck or wiring a new outlet, if you are not sure whether you can complete a renovation to code, it may be wiser to hire a professional.
Noise pollution can increase due to population growth, highway extensions, or other noisy nearby developments. And too much noise can lower a property’s value by up to 10%. If the area surrounding your home is undergoing a construction boom, you may lose out. While there’s not much you can do about this aside from petitioning your local government against such changes, you can keep an eye on your neighborhood and potentially sell before things get out of hand. No matter how nice your home is, its location definitely matters at appraisal time.
Nearby Unpleasant Facilities
Most people don’t want to live near a dump, power plant, hospital, factory, or other loud, smelly, or noisy facility. And owning a home near one may decrease your property value by up to 7%. Big facilities not only spoil the peace and quiet of your backyard atmosphere, they can make it unsafe for kids to play outside or ride bikes due to trucks and traffic, and industrial activities can have a negative environmental effect on your water or soil.
If you’ve got a great home in a bad location, or a home that has depreciated due to deferred maintenance or DIYs gone wrong, Mitten Made Properties can help. As professional home buyers, we pay a fair cash price for properties totally as-is, and we can close in as little as two weeks. We’ll even pay all the closing costs! Call us at (248) 883-3340 to find out more.