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, we’ll have a deep dive on the above-mentioned factors that make property valuedecreaseplus 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 buyer’s 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 don’t 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 don’t 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 home’s 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 neighbor’s 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 don’t 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 home’s 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.

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