Homeowners have the ability to significantly influence their property’s value, not just by actively adding to its worth, but by steering clear of potential pitfalls that could lead to the depreciation of the house’s overall value. Being mindful of the following five risks will help you maintain the worth of your home, and stop its valuation from tumbling down:
1. Subpar Workmanship
When you trust builders to work on your house, it is vital that you only ever work with the best new home builders in your area. Badly done work can impact the value of a home in many ways. It can degrade the aesthetics of your house, compromise safety standards, and might even fail to comply with local building laws and regulations. Only trust the best builders and contractors with your house, safeguarding its value, function, aesthetics, and safety.
2. Dated Eco-Friendly Aspects
Today’s house buyers want modern, eco-friendly features when they look for a new home. These include solar panels, green building materials, and smart technology. While these modern features are great, what house buyers really want are the most fundamental eco-friendly aspects.
Recent statistics show that around 30% of buyers care about the heating and cooling costs of a home, as well as the quality of the windows and doors and their ability to insulate and soundproof. If your house does not have up-to-date eco-friendly elements, this could hit you where it hurts – in your home’s valuation. With eco-awareness growing as quickly as the cost of living, buyers not only want but expect these eco-friendly basics to be incorporated into their future homes.
3. Outdated Rooms
Outdated rooms can be a huge drawback for potential buyers because they impact the way they perceive the entire house. When a potential buyer realizes they’ll need to renovate, they see their budget expanding, and if it gets too large, it’ll erode their willingness to strike a deal. Appliance costs, countertops, flooring, fittings – these are all large amounts of money that when calculated by the buyer, will lead to them making a lower offer in order to account for those costs in their budget.
Outdated aesthetics also make it hard for buyers to see themselves in your house, leaving them uninspired and unwilling to buy. All in all, outdated rooms – especially key rooms like the bathroom and the kitchen – are an easy way to decrease the value of your home.
4. A Messy Exterior
Did you know that a messy exterior can not only put off potential buyers but actively lead to lower offers on the house? A recent study found that a roof partially or completely covered by plants is an unwanted feature for nearly 50% of the study participants, along with uneven paving, messy gardens, and old paintwork. By keeping your home’s external aesthetic pristine, you can maintain your curb appeal and boost the value of your home.
5. Negative Equity
US homeowners lost over $100 billion dollars in equity in 2023, and over 200,000 could go into negative equity if house prices drop a further 5%. Unfortunately, this can happen in the wake of global recessions and other economic factors. Though these elements are out of your control, their effects can be devastating.
Thankfully, there are some ways to avoid negative equity, including:
- Increasing the value of your house with improvements
- Ensuring you have proper valuations
- Avoiding any high-risk property purchases
- Doing plenty of research about upcoming changes to the neighborhood
With the tips above, good advice, and proactive actions, you can maintain the value of your property and actively protect your investment.
