People often talk about boosting the value of their home with various improvements. But it is seldom that you hear anyone talk about the unforeseen factors that devalue their home. Furthermore, there are some fluctuations in a home's market value or appraisal value that are out of the homeowner's hands. In this post, we'll break down some of the broader aspects of home value and determine which "improvements" will serve you best in the long run. We'll also point out the red flags that are sure to devalue a home on the market.
Location
Few things so greatly affect the value of your home as location. If you happened to buy a house in Brooklyn Heights a couple decades ago its value has probably gone up exponentially since then due to the high demand of living in a trendy part of New York.
Aside from living in the hippest neighborhood, people choose their home based on other location factors. Schools, hospitals, shopping centers, vicinity to highways or public transportation may all play a big role for many people.
Location factors that will negatively affect the value of your home are high or increasing crime rates, economic decline (boarded up stores aren't very appealing to home buyers), a high incidence of registered sex offenders nearby, and neighbors that have unkempt homes or hoard junk in their yards.
Other location factors are harder to sniff out. With the exception city dumps or waste processing centers--which you won't have any trouble smelling--having undesirable places like power plants or noisy freeways in your neighborhood can also devalue your home.
Inside the home
Home improvements are a great way to increase the value of your home--as long as those improvements meet a few criteria.
Any changes you make should be legal and up to code. Potential buyers do not want the liability of illegal home improvements, nor can they ensure that the job was safely done and doesn't put them and their family at risk.
Your improvements should also be up to social standards and changing tastes. Yes, we all have our own preferences when it comes to paint colors and home decorations. But when trying to sell a home it's important that it doesn't look like a time capsule from the 70s, rife with wood panels and shag carpets.
When it comes to home repairs many homeowners elect to put off big projects because they are daunting and time consuming. Instead they focus on surface level improvements that might not do much to improve the value of their home. If you have plumbing that needs to be replaced, deteriorating flooring, or faulty heating and ventilation, make sure you take care of those before putting your home on the market.
Ask the pros
If buying or selling a home is in your foreseeable future, one great way to get a jump on your research is to consult a real estate agent and a building contractor to learn more about your area's own unique market values. This will give you a head start on making changes to your home and will tip you off on what to look out for when home hunting.
People often talk about boosting the value of their home with various improvements. But it is seldom that you hear anyone talk about the unforeseen factors that devalue their home. Furthermore, there are some fluctuations in a home's market value or appraisal value that are out of the homeowner's hands. In this post, we'll break down some of the broader aspects of home value and determine which "improvements" will serve you best in the long run. We'll also point out the red flags that are sure to devalue a home on the market.
