What Brings Down Property Value?

1
What Brings Down Property Value?
Values of a property can go down for a number of
reasons. In general, the economic condition of
the area, availability of mortgage funds and jobs
can increase the values of properties in a solid
market. These are also what brings down property
value. For example, when the economic condition
falls and when jobs become scarce, this would
also reflect on the property value.
In this article, well have a deep dive on the
above-mentioned factors that make property value
decrease plus more reasons for property values
falling. In some of them, it requires
governmental action to change the condition, but
in others you can actually do something about it.
2
What Brings Down Property Value?
What Brings Down Property Value? Knowing what
brings down property value helps you know how to
protect your home. After all, your home is one of
your biggest investments. Want to know what
causes property values to decrease?
Not-so-good Economy When there are only a few job
opportunities in your area, with layoffs
happening and home ownership is at risk, property
values drop. Consequently, fewer people can
afford to purchase a home. Homesellers decrease
their prices to be competitive in a diminished
market. Foreclosures and short sales become more
common and property values go down. It now
becomes a buyers market and owners now have no
other choice but to drop the prices of their
homes to compete.
3
What Brings Down Property Value?
Short Sales and Foreclosures The fair market
value of your home decreases when there are a
number of homes in your neighborhood that are
available as short sales and in foreclosure. The
thing is buyers interested in your home can
choose to buy lower-priced homes within your
neighborhood. To be competitive, you need to
make sure your house has something that other
properties dont have. Enough that they are
willing to put in more money to buy your home.
What you can do without breaking a bank is to
spruce up your grounds, paint your exterior, and
repair affordable defects. Undesirable
Amenities Non-availability of medical facilities,
lack of good schools, and bad roads may hurt your
property value. If a crime recently happened in
your neighborhood, it can also drive away
potential buyers.
4
What Brings Down Property Value?
Environmental Risks Generally speaking, people
dont want to live in a property near a power
plant or a landfill or anything in an environment
that can be harmful to your health. One study
shows that the construction of a power plant
within 2 miles of a house decreases its value
between 4 percent and 7 percent. Landfills, as
expected, also reduce home value, dropping
between 6 percent and 10 percent when your home
is near a landfill. Moreover, hazardous waste
sites drop the property value by up to 15 percent.
5
What Brings Down Property Value?
Poor Curb Appeal First impressions matter when it
comes to selling a home. A property with a strong
curb appeal is proven to sell more than half the
homes on the market. A rotting fence can
instantly scare buyers away or can easily add on
to their list of why they should put on a lower
offer for your home. Get rid of artificial
installations around your yard if you have too
many. Even water elements such as pools and ponds
could drop the value of your homes, especially
for buyers with small kids or for buyers who
simply want to start a new yard. Also, make sure
your yard is clean. Plants are trimmed. If you
buried your pets in the backyard, be prudent
enough to remove any grave markers. Another
thing you should address is old, faded, peeled,
or cracked exterior paint. It can also hurt your
homes value. When giving your house a fresh coat
of paint make sure to go with neutral colors in
the shades of white, gray, and beige. These
colors appeal to most buyers.
6
What Brings Down Property Value?
Poor Maintenance in the Neighborhood You have a
well-maintained yard and your house is in good
condition, but your neighbors lawn needs lots of
TLC and cleaning with trash, junk cars or other
unsightly things haphazardly placed in their
front lawns. This can also hurt your property
value. This can be the case in houses outside a
controlled community or one that has no strict
regulations on how residents maintain their
property. Old/Outdated Interior and Maintenance
Issues Buyers dont like outdated kitchen and
baths, old appliances, and a long list of
maintenance issues such as leaky faucets and
stained ceilings. These will pull down your
homes value. A roof that needs replacement and
an old air conditioning system, these are also
included on the list of what makes property value
decrease. Make sure to get rid of any clutter.
Depersonalize your home by putting away family
photos when the buyer comes to visit
7
What Brings Down Property Value?
Seasons The months of May through August are
generally considered the peak season of selling
and buying homes since families can move without
interrupting the kids school years.
Historically, home sales and values drop the
month of September when buyers become more
scarce. October to January are also slow in areas
with four seasons. But if your home is in a sunny
climate where winter visitors flock, homes can
increase in value during the September-to-February
period, and values also decrease when buyers are
only few. Noise Pollution Homes on busy streets
or on main roads tend to sell at a discount
between 5 percent and 10 percent. This is because
most people prefer less traffic and noise. Buyers
may walk away or offer less if they find the
inside of the home too noisy.
8
Thank You