Hello dear reader! I’m so sorry for the weeks I missed posting articles last month. There was a death in my family which has been difficult to work thru. While I get things going again, I have a returning guest blogger for this week and next week. This week, Betty White shares some things that can decrease property value.
As a certified residential appraiser, I can tell you that while some of the things noted in this report can decrease value, they may not, so take these points with a grain of salt. Betty is not an appraiser. I can tell you that some buyers will certainly agree with these points! I’ll give my two cents at the end. Enjoy!
Having a garden shed, high-quality bathroom tiles, and an open-concept kitchen and dining area are all well-known ways to increase the value of your home. However, while some of these factors are within your control, others cannot be modified. What people rarely talk about are things that can decrease property value. Always keep in mind that your Ohio home is one of the biggest investments you’ll ever make. So regardless of if you’re planning to sell soon or you’re simply looking for ways to protect your investment, you need to be mindful of what you put your hard-earned money into. That’s why we’ve consulted an expert in home appraisals and here are the top features that negatively affect the value of your home.
Top 7 things that can decrease property value
As a homeowner, it’s your responsibility to think about ways in which you may increase the value of your home. However, you should also be thinking about ways in which you might be decreasing it. This is especially true if you’re planning to sell your Ohio home soon. So, before you start packing and looking for movers to help you easily go through your long-distance moving in Ohio, you first need to make sure you’re making the most of your home sale. After all, that’s the only way you can guarantee to have a positive experience.
Therefore, when making any renovations to increase your home’s worth, always keep in mind that potential buyers may have very different tastes from you. Demographic and regional factors may contribute to a wide range of preferences. Always remember that a home that can be easily adjusted to meet the needs of a wide variety of people will sell far faster than one that’s designed specifically for you. So, here’s a list of things that can decrease property value you should know about.
#1 Natural disasters
Plenty of factors can negatively affect the value of your home that you have no control over. While your home’s value can withstand a few snowstorms and rainstorms annually, extreme weather can devastate it. The value of your home can take a hit if it’s damaged by a natural disaster such as a hurricane, tornado, wildfire, earthquake, tsunami, mudslide, or flood.
Let’s take Hurricane Katrina in 2005 as a famous example. There was a significant drop in property values in the New Orleans metropolitan region after the hurricane. Even after more than a decade, property values in some places remain below average. Your home’s resale value will go down because prospective buyers would think twice about purchasing in a high-risk area.
#2 Bad neighbors
Do not discount the possibility that your neighbors have a negative impact on the value of your home. Your home’s value may drop if potential buyers are turned off by an unattractive or unwelcoming neighbor’s home, by the constant barking of nearby pets, or by the raucous noise of nearby parties. You have a right to know some basic information about your new neighbors, so don’t be shy about making the appropriate inquiries.
#3 Unappealing home exterior
The “curb appeal” of a house is the first impression it gives to passers-by. Therefore, while preparing for a home appraisal it’s important to work on improving your home’s exterior. Not only that this will help you boost the value of your home but it will also help you attract buyers and sell it quicker.
If the exterior of your property looks like it needs renovation, potential buyers may have second thoughts about making an offer or may not even bother to schedule a showing. Additionally, as they’ll be responsible for making the house presentable again, they might lower their offer.
#4 The address suffix
It’s hard to believe, but having “the right” suffix to your address can add up to 36% to the value of your home. Addresses on boulevards, places, and roads are the most “expensive,” according to different research. Street, road, and avenue are all examples of depreciating suffixes that can be added to a property’s address.
#5 A home that’s too personalized
Potential purchasers are keenly aware of the work that will need to be done on a home during a viewing. Removing wacky wallpaper, painting over strange hues, and changing unconventional fittings are at the top of their priority lists. If you’re going to go for an unusual look, make it easy to undo before putting your home on the market.
#6 Overuse of carpeting
You remember how great it was to be able to go barefoot throughout the house after you first installed carpets. You made yourself at home on it and relaxed while watching movies with your loved ones. However, after a few years, the carpet starts to look and feel nasty due to the occasional accident and the continual presence of your bare feet.
The carpet will exhibit evidence of severe use if it’s not frequently cleaned. And if you have carpet all over the place, you’re probably not having it professionally cleaned very often.
Potential buyers may be put off by a home that is carpeted from floor to ceiling. As an example, it can have a shabby, unclean appearance. Second, some potential purchasers may be allergic to the carpet’s dust and other allergens. On top of that, carpets are expensive to replace. Therefore, if possible, incorporate hardwood or laminate flooring, and restrict carpet to the bedrooms.
#7 Converting your garage
The value of your home will drop if you use the garage for anything other than parking automobiles. This includes a gym, a playroom, a home office, or anything else. That’s because most buyers need somewhere to store their vehicles and gardening tools. Make it simple to return the garage to its original function if you decide to utilize it for something other than parking.
#8 Too much clutter
You wouldn’t think it, but there’s a certain level of clutter that might lower the value of your home. It’s just basic human nature. With all your belongings strewn about the floor, a potential buyer may have trouble envisioning your home as their future residence.
The average person has no idea how much junk they have amassed over the years. Some folks are pros at keeping it under wraps. But decluttering is essential when you’re thinking about your home’s worth. Donate unwanted stuff, rent a storage unit, or get creative about finding new homes for things you rarely use. The added value to your home could be worth the small investment and just the relief from stress you’ll get could be worth it alone.
There are plenty more things that can decrease property value and while some can be quickly sorted, some are not under our direct control. But now that you know what to focus on and what you should avoid, it will be much easier to start preparing your home for sale. So wait no more and order a home appraisal even today!
Photos are taken from pexels.com.
Thank you, Betty, for sharing these points with us!
My takes on some of the points mentioned in this post…
I hope you enjoyed this article! In my experience, annoying neighbors can be challenging. However, I have never found that an annoying neighbor really has any impact on market value. I covered this topic in my article, “Is Your Crazy Neighbor Lowering Your Home’s Value.” If you would like an appraiser’s viewpoint on this topic, please read my article. If someone’s selling their home, their probably not going to mention that their neighbors are annoying. After all, they’re trying to sell their home.
I’ve also not seen any true market data, that is not anecdotal, that supports the idea that an address’s suffix really impacts market value. I know there are studies out there that make this claim, as Betty mentioned. I also wrote an article on this topic, “Is There a Difference Between Streets, Avenues, and Boulevards?” If you’re looking for an appraiser’s viewpoint on this point, please check out my article.
I don’t mention these things to be a contrarian. But, as an appraiser, I just wanted to point out my takes on these things as an appraiser. I appreciate Betty sharing these points, and I always appreciate hearing others’ perspectives on these things.
Thanks so much for being here and for your loyal readership! In 2023, I am going to work on providing some blog posts that focus more on the Cleveland market. I think that as the market continues to change, sharing more local market data with you is important. After all, this is the Cleveland Appraisal Blog! I hope you will benefit! I do already provide market updates and charts in my monthly newsletter, but my blogs have not really focused on my local market.
I love loganlisle Instagram page. As a lover of puns, these guys crack me up! This week, I leave you with a heartwarming story that I just saw from them. We need more good stories these days!
Have a great weekend!
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If you’re an appraiser or other real estate professional, and you’re looking to gain some new analytical skills, check out George Dell’s Stats, Graphs, and Data Science 1. I have taken George’s class more than once and I always learn something new! What I have learned has served me very well over the past couple of years as the market changed so rapidly. And it’s still changing rapidly! Find out how to measure those changes with data and good analysis! Click here to register.
Here are some links to other articles I think you might also enjoy…
5 Ways Homeowners Can Save Money – Birmingham Appraisal Blog
An Excess of Appraisers? More on Education – George Dell’s Analogue Blog
Getting high on housing hope – Sacramento Appraisal Blog
Leaves & Prices Are Falling – November Newsletter 2022 – DW Slater Company Blog
How to Reduce Appraisal Revision Requests – APPRAISAL TODAY
For my readers in the CLE area… here are some articles related to news in our local area that you may enjoy…
You Can Stay in a Cave House During Your Next Visit to Hocking Hills – Cleveland Scene Magazine
A rising tide: Cleveland residents invest in making their neighborhoods better – Rhonda Crowder of Fresh Water Cleveland