Things that helps to decrease the property value

If you are a homeowner, you want to retain or increase your home value. You might want to do this because you plan to sell in the future, you like DIY and home improvements, or you need your home to function better than it already does.

While most homeowners focus on what they can do to increase a property’s value, they often ignore things that can bring down the value of a house. Usually, it can be a case of what you need to maintain or repair, rather than what you can add.

SUPPLY AND DEMAND

One of the basic yet compelling factors affecting property prices is the dynamics between supply and demand. As the demand increases, the price of a property adjusts automatically to bring stability to the market.

LOCATION

Neighborhood plays an important role in determining the price of a property. Sometimes the location is more important than the property itself and it outweighs the other factors. A well-developed neighborhood with every amenity and facility is something that creates demand. And demand creates its own supply instigating the supply and demand cycle.

Apart from all these, the necessities have a direct impact on the price of apartments as well e.g. safety and security, educational institutions etc. These are again subjective to personal needs. So before purchasing an apartment, know what you are paying for and if it is worth your investment.

ECONOMIC FACTORS

The banking crisis affected the Australian housing market badly, and it still hasn’t recovered. Many homeowners were left out of pocket or with mortgages they could no longer afford; you may have been one of those people.

The housing market works on supply and demand, and if there’s an economic downfall, there isn’t a demand for people to buy houses. And if people aren’t buying homes, the value of your home could decrease.

Interest rates also affect the value of your house, for example, if The Banks of Australia raises the base rate, bank interest rates usually rise, which means your mortgage payments go up.

Rising payments mean people have to seek out cheaper properties, and if the demand for buying is low, the value of a home can plummet. There’s currently uncertainty of how Brexit will affect the base rate, which is leaving many homeowners and first-time buyers concerned.

NASTY NEIGHBORS

Before a potential homebuyer can get to your house, he has to drive past your neighbors, and they can take a bite out of your home's value in a multitude of ways. For example, arguing over exactly which blades of grass encompass the all-important property line is just one of the many disagreements that can sour neighbors against one another. Sometimes those arguments spill over to future owners. If it's apparent you have a dispute with the folks next door, many buyers may pass or offer a lower price.

Another issue that can crop up is colorblindness -- your neighbor's colorblindness. If you're one of those unlucky people who have a poorly pigmented house in your neighborhood, it's doing more than giving you something to grumble about when you pass it on your morning jog. That eyesore is driving potential buyers -- and potential dollars -- away as well.

Buyers may also consider a nearby unkempt lawn or annoying pet within earshot as strikes against a property. People who party at all hours can be a problem, too, as can living close to a registered sex offender. If you're within a tenth of a mile, that will almost certainly take away some of your property value and your home will likely take much longer to sell -- to the tune of about 9 percent of the value and 10 percent more time on the market

Unfortunately, there isn't a lot you can do when items like these are an issue besides potentially performing some figurative fence-mending (or abject pleading) with your neighbors.

STRUCTURAL DAMAGE

You may notice little things that appear over time, such as a missing roof tile or a crack in the foundation of your home.

While it can be tempting to ignore these problems, it’s always better to deal with them straight away because one problem can often lead to another problem, which is likely to be more expensive.

Estate agents will include these factors in their official price and will relay any information back to a buyer.

UNFASHIONABLE FURNISHINGS

We’ve all got our tastes, but let’s face it, some people’s taste is ‘unique’. Now, there’s such a thing as timeless design, and it can be achieved with some hard work and an eye for classic style, but most people don’t have that eye.

Also, it’s in the interest of the home improvement industry to push trends and fads because they make money from them. Then they go off-trend, and the cycle continues.

Also, there are people that buy once and don’t decorate again for decades. If your design is timeless, you have nothing to worry about. But if you want to maintain or increase the value of your house, you have to maintain and improve your home.

For example, if you decorated your kitchen in the early 00s and it looks like it was decorated in the early 00s, there’s a good chance it’ll affect your house price. Similarly, if you’re too niche or don’t get the most out the room, someone will have to re-do it.

Poor Renovation

Although home values trend upward over time, the neighborhood you live in provides something of a cap to how much your home might conceivably be worth.

If you have a relatively modest home in a neighborhood with high home values, you have a lot of potential for increasing value by improving the property. Conversely, if you have the nicest home on your block, the neighborhood’s overall value will limit how much more the value of your home can grow.

There is no simple, reliable formula for calculating how much this affects the resale impact of home improvements, but you should keep it in mind. This concept almost never makes one of the projects below a net moneymaker, but it can mean an otherwise value-adding project ends up losing money.

And while it’s natural to want to make improvements to increase your home’s resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn’t mean a potential buyer will feel the same way. Find out which renovations may affect the value.

Lavish Lighting Fixtures
Too Much Wallpaper
The texture on the Walls and Ceilings
Quirky Tiling
Too Much Carpeting
Bright and Bold Paint Colors
An Extremely High-End Kitchen
A Luxury Bathroom
Combining Bedrooms To Create a Bigger Room
Removing Closets
A Sunroom Addition

Ready to Sell Your Property?

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If you are thinking to sell your home with a professional real estate agent who can bring top results, first get your Free market appraisals from here and we will let you know soon the updated value of your home in the local real estate market.