11 things that negatively affect your home’s market value
This is a great read for both buyers AND sellers. Sellers – this helps you price correctly. Buyers – consider these things when choosing your next home!
1. Bad location. This can come down to freeway noise, power lines, school district, you name it. See: Location, Location, Location and Issues That Make it Hard to Sell
2. Obsolete appliances or systems. Who wants an electrical system or plumbing system incapable of handling modern conveniences? Would you buy a home if the appliances were worn out or broken? (Maybe if you got a stellar deal or market inventory was tight!)
3. A bad roof. Roofs are expensive to replace and a good roof is considered standard equipment in a house. If your roof has problems (or storm damage), expect to take a hit in the price.
4. No garage or small garage. Unless you’re living in a condo, retirement community or historical or in-town neighborhood, most Minnesota home buyers will look for at least a two-car garage. Preferably attached or with a breezeway.
5. Garbled floor plan. Tiny kitchen, small bedrooms, awkward additions, an inconvenient floor plan or a layout that requires you to access bedrooms or bathrooms through other rooms will detract value from your home.
6. Stale or overly personal decor. Sure, that wallpaper is the hot style right now, but for how long? All those hunting trophies and collections are your favorites, but will the buyers like them? And what is more important? Letting the buyer see your home or photos of your kids? Depersonalize please. And consider staging your home for sale.
7. A pool. Forget what you might have heard. An in-ground pool in most parts of the country doesn’t automatically raise the value of your home and certainly not in MN.
Having a swimming pool will automatically limit your market when it comes time to sell. It’s constant upkeep, they get cracks, the equipment goes down and it’s expensive to replace, and the liability is high.
Consider your home value and location. In a million-dollar house, not having a pool is a detraction but will not necessarily increase your value.
8. Poor curb appeal/exterior maintenance. If you’ve got deteriorating exterior paint/siding/trim, a heaving sidewalk, overgrown bushes and an old drafty door that sticks, I don’t care if the home is immaculate inside, you won’t even get the buyer out of the car. If the curb appeal is in disrepair they buyer starts out on a negative note thinking about what else may be poorly maintained. Not to mention, the home may not qualify for FHA financing.
9. A laundry list of needed repairs/improvements. A list of must-dos like burnt out lights, broken step, etc just to conduct everyday life will scare off a lot of potential home buyers. Especially with first-time buyers since most of them are already scraping cash together just to close. Even local municipalities are cracking down on condition. Your area might even require a TISH report to evaluate the homes condition prior to sale.
10. Environmental hazards. Besides being a danger to human health, lead, mold or asbestos can kill home value. Well and sewer problems usually need to be resolved in order for buyers to get financing.
11. High energy costs. Buyers get more conscious every year about energy costs and their carbon footprint. Conduct and energy audit and if economically possible make efficiency upgrades that will not only save you money while you live there but attract potential buyers.
Bonus Tip: It seems like common sense but the wrong price can cause issues getting your home to sell and pricing right can be difficult. Consider hiring an agent that is a Pricing Strategy Advisor® and get your home priced right!
Look for ways to increase your value? Contact a Seller Representative Specialist.
Home sellers may also want to find a REALTOR with the following designations and/or certifications:
SRS Designation= Seller Representative Specialist
CRS Designation= Certified Residential Specialist