Usually, those who put properties up for sale concentrate on the features that enhance the value of a property. However, what also needs to be taken into consideration are the factors that could decrease the value of your home. We list below some factors to keep an eye out for, which could help both the seller and the buyer arrive at and accurately find the valuation of the property.
Kerb appeal: First impressions do make a difference and the more attractive the first glimpse of a property is, the more likely it is that buyers will be interested in it. A neat and clutter-free appearance will add volumes to the kerb appeal. A freshly painted exterior will make all the difference, and having sufficient parking space will be an added bonus.
Location: This can make a real difference to the value of a home. If the area is not attractive and environmentally friendly, even if the property itself is appealing, it could decrease the value.
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Pollution: Both air and noise pollution can be a deterrent. If the property is located near a factory or if there are motorways or other noisy traffic lines nearby, it could detract from the value of a property. Noise pollution could include having neighbours who do not live as quietly as would be desirable. Installation of double glazing could cut down on the noise and reduce loss of heat, too.
Limited access to good schools: Many prospective buyers is likely to be families with children, or couples looking to plan their future. Therefore, they will be likely to search for a new home in close proximity to good schools.
Internet facilities: At times like the present, when many people are still working from home, broadband speed is essential. If the internet is slow, it could cause a decrease in the price of a home.
Shopping for essentials: If there is no local market or shopping facility in the vicinity, it may put off prospective buyers and lead to a decrease in the property value.
Overload on home improvements: While some improvements to the home would help in appreciating the value, certain “improvements” or renovations could decrease the value. Most buyers would like to plan the house layout themselves and may not agree with the improved additions, so it is best to limit those to the essentials. Another important issue is to always check that any home improvements planned are within legal building regulations or whether specific permission is required. These approvals will need to be shown to the buyer. Illegal renovations could end badly, and with fewer buyers interested thereby decreasing the value of the property as well.
Condition of the property: This is a major factor while valuing the property. If it is in top condition, the price will be in the higher bracket. A low energy efficiency rating could decrease the value, especially since Energy Performance Certificates are now mandatory (https://www.gov.uk/buy-sell-your-home/energy-performance-certificates). A survey done on the property could point out areas that need to be rectified and once these are carried out, the value of the property will rise, too. Look out for Japanese knotweed on your property, and your neighbours. It grows so fast and can cause structural damage to the foundation. Other causes of structural damage could be cracks in the walls or ceiling, damp roofs or subfloors, concrete that is crumbling, termites, among others. These could decrease the value of the property unless rectified in time.
Superstitious factors: It may seem silly, but Many people are superstitious, so properties where murders, suicides or even unnatural deaths have occurred could detract from the value.
Economic conditions: Uncertain economic factors can have a real impact on supply and demand. The past and the present property market has shown that the demand has always exceeded the supply. However, if there is an economic shock that causes a fall in demand, the value of the property will also plummet.
Conclusion: Of the many factors that could decrease the value of a property, some are redeemable while others are not. For both the prospective buyer and seller, the higher the value of the property, the better – for the seller, the sale price and the buyer, the ROI (return on investment). Hence, the sooner the above issues are taken into consideration, the quicker the issues to increase the value of the property can be solved.