What lowers property value? Besides a plunging market, you can make mistakes that hurt your property’s value. Here we will take a look at some of those common mistakes.
You’re a homeowner now. You can kiss bland uniformity goodbye once you hand your keys to your now-former landlord. The world is your canvas. At least, the part you now must pay a mortgage on. You’re the artist. You’ll shape it to delight the senses.
You may have big dreams for that new home, but cool your jets. This is a time for careful thought, not for quick, modern design notes on cocktail napkins. You can make changes to update your new home. But, some may lower its value. This is no small thing.
If you thought that ugly light fixture was a turn-off, read on. Potential buyers will find some things very unappealing.
There’s Good, There’s Bad and There’s Ugly
Every homeowner will leave a mark on the homes they own, this is an inevitable fact of life. The only question you need to ask yourself is if your mark will be a good one. Will you be the homeowner who planted a gorgeous maple tree that became a beloved climbing tree? Or, are you the one who glued neon green shag carpet to the hardwood floors?
We made a short list of some easy, dramatic ways to destroy your home’s value. We hope you can avoid these when you sell. Now, this is an important point to note: if you’re in your forever home, go hog wild. If you don’t need to sell that puppy ever, feel free to do whatever thrills you. Your wild choices could block options like refinances and reverse mortgages later.
Having made those disclosures, let’s talk about home value-destroying projects!
4 Things That Can Lower Your Home’s Resell Value
Now that you own a house, people will be giving you all sorts of weird advice. You’re going to have to learn to tune it out, because generally, random people don’t know. Most people own two or three homes in their lives. So, they lack much experience with market values and upgrades that make a house really pop.
Realtors, contractors, and other home pros know what’s in and what’s a timeless, classic fix. These are the people to ask when you really need a second set of eyes.
Related: Selling Your Las Vegas Home
But, before you even get that far, let’s count down some of the worst ideas for your new home.
What Lowers Property Value – #4 Really Personalizing the Place
Look, we know you’re eager to make your house your own. But step away from the lime green wallpaper and the orange tiles. Just for a minute. Think this through. Some buyers can see past over-personalization. However, others simply cannot. Realtors once advised sellers to paint everything beige. It creates a blank palette for buyers to start from.
If you want to use quirky wallpaper, choose something that’s easy to remove when you go to sell. Choose a mostly neutral tile. Scatter the orange ones like confetti. In short, tone it down a bit. However, feel free to paint to your heart’s desire — just plan to repaint before you put the house on the market.
A buyer’s first impression of your home shapes their thoughts as they walk through. They’re simultaneously calculating two things in their heads: “How much can I afford to pay for this house?” and “How much will I have to pay to fix this place?” Each intolerable thing they encounter, like that orange tile, adds to the repair budget. As it grows, the price they’re willing to pay shrinks.
Oh, you left the flamingo wallpaper in your bedroom? The repair budget is getting pretty heavy. And these are just the visible things. They haven’t yet started the inspection period. The point here is: do you, but do it in a way that can be reversed before anyone shows the house.
What Lowers Property Value – #3 Converting the Garage to Anything Else
There’s a difference between using your garage as a gym and making it a gym permanently. When it’s a permanent gym, you can’t push some stuff out of the way and pull the car in real quick to get it out of the rain. In fact, you probably don’t even have a garage door anymore!
Many have made this hasty decision. They’ve turned their garages into master suites, gyms, playrooms, and offices. They did not consider the long-term effects. After spending thousands on the project, they find it hard to resell their homes.
No matter how well the conversion was, the buyer thinks, “Where will I stash my lawnmower?” Even if the yard is tiny, it’s a valid question.
Buyers have expectations when they start a transaction. They expect houses in certain areas or price ranges to have garages. So, it breaks their brains to find one that doesn’t fit this model. That’s the beginning of the price-chopping spiral. You’ll either sell the house at a deep discount, or give up and rent it out, or not move at all.
What Lowers Property Value – #2 Tearing Down (Some) Walls
This one is actually not a hard-and-fast rule. There are sometimes walls that should come out. But, don’t make this call without consulting an architect or a contractor. There are several things to consider, including the home’s structural integrity and flow.
Never remove walls that reduce the number of bathrooms or bedrooms, unless you have five or more beds and three or more baths. At that point, you have a little wiggle room. You should be fine if your home meets the local standard. It should be a three-bedroom, two-bath home, or whatever is typical in your neighborhood.
But, converting a three-bedroom home into a two-bedroom one to expand a bedroom will kill its value. If you think about it from a market perspective, it might make a bit more sense. A larger or more mature family is most likely to buy a three-bedroom home. With two incomes, they have a bigger budget. They need more separate spaces for teenage kids.
Agents are more likely to show a two-bedroom house of the same size to young families with small children. They may have only one income, as one parent stays home to raise the toddlers. They may also show it to single people. Their budgets are smaller. So, the two-bedroom market can’t support the higher prices of the three-bedroom market.
When an appraiser appraises your home, they will use comparable homes. They will consider the neighborhood, size, and number of beds and baths. Let’s imagine that two-bedroom homes are selling for $30k less than three-bedroom homes. Therefore, yours may appraise below your expectations. Perhaps even below what you paid.
Bottom line: Don’t knock down walls. Consult your Realtor and an architect or contractor first. You need to understand the full impact of this decision.
Related: 10 Secrets To Selling Your Home
What Lowers Property Value – #1 Unprofessional DIY Repairs
There are two kinds of DIYers. Some have trade experience, and some do not. If your main skills are from eighth-grade shop class, don’t try any big jobs on your own. Start small and work your way up. Watch lots of YouTube videos. Practice on test materials that won’t harm your home. For your house and your financial future, know when you’re in over your head.
A home pro is often less expensive than you might imagine if you just call them in first. When they’re asked to clean up a bad repair and still make the original correction, it can cost a lot extra.
Obvious DIY repairs in a home terrify potential buyers. When they see them, they wonder what else you’ve tried to repair on your own. Did you rewire the electrical box? Is the house going to burn down in the night because you did something to the HVAC?
They don’t know you or your skills. So, they fixate on that one botched repair. This either scares them away or leads to a much lower offer than you expected.
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