What lowers the value of a home?
If you’re considering putting your home on the market in the next year or two, you may be looking for a few ways to either improve the value of your home or at least understand why it may be priced a certain way. Depending on a typical buyer in your neighbourhood or for your type of home, certain things may matter more to your buyer. Working with an experienced real estate agent can assist you in discerning what types of repairs or work on your home could increase the value. We’ve compiled a list of some of the most common deterrents for buyers, but please keep in mind that each will be specific to your neighbourhood, home type, and the potential buyers who end up touring it!
Foreclosures in the Area
First and foremost, if there are many foreclosed homes in your neighbourhood, the impression of your home on potential buyers is also impacted. It lowers the value and interest of your home and your neighbourhood
Bad Schools
Even if you do not have school-aged children, there are plenty of buyers who do or are planning to in the next few years. If the schools in your area are unsafe or have bad reviews, this may impact buyers’ interest in your property and your neighbourhood. Although there isn’t much you can do to improve your local schools in a few short years, you can advocate for better funding, get more involved in school activities if you do have children there, or attend local neighbourhood association meetings to see what can be done to improve the quality of the schools.
Amenities in the Area
Another major impact on the value of your home and the neighbourhood is the local amenities and their proximity to your home. For example, local grocery stores, malls, schools, community centres, walking trails, and more are a large benefit to the quality of your home. But if the community centres or malls are too close, they may contribute to light and noise pollution, meaning they could reduce the value of your home instead.
Crime Rate
Crime in your neighbourhood is an obvious deterrent to potential buyers. Although there is little you can do to remedy this, getting involved in keeping your neighbourhood safe by joining associations, reporting dangerous activities, and supporting your neighbours is a good place to start.
Neighbourhood Vibe
What is the overall impact of your neighbourhood on visitors? Is it filled with nicely cut lawns, clean streets, and children playing? Is it more of an elderly crowd? Or is it dirty and uncared for? The way that your entire neighbourhood looks has a large impact on potential buyers, and unfortunately, much of this is out of your control. Working with a licensed real estate agent, you can try to find the type of people who are interested in your neighbourhood already, and market your home to them specifically. This can help you tailor your home to a specific audience who you’re sure will be interested in it.
Outdated Finishes
What kind of finishes does your home have? Outdated finishes like old ‘trends’ of home interiors, lighting, paint, and more can deter buyers. It is always best to stick to neutral, currently on trend or ‘timeless’ finishes to make your home more appealing to all types of buyers.
Too Fancy
On a similar note, even if the finishes are on trend, if they are too fancy for your neighbourhood or the price of the home, or are too individualized, they may deter buyers instead of impressing them. A real estate agent can help you decide whether or not your fixtures and the details of your home fit the typical buyer for your neighbourhood, and help you decide on new fixtures if necessary.
Maintenance Needs to be Done
Any maintenance that needs to be done on your home is another deterrent for potential buyers. As much maintenance as you can do before listing your home, the better your home will present to potential buyers. During the sales process, the majority of buyers will be interested in completing a home inspection before they officially purchase. Even if a repair isn’t noticeable to a buyer, their inspector is sure to find it and it may mean they’ll want to renegotiate their price.
Paint Quality
How is the paint looking outside of your home? Curb appeal is a very important price determiner for your home. The better it presents, the better it will do with buyers.
Curb Appeal and Yard Maintenance
Following this concept, the look and feel of your yard, outdoor fixtures like fences and sheds, and your gardens are all important factors in pricing. Buyers will be easily impressed by a well-manicured lawn and well-maintained home and will be just as easily turned off by a poorly cared-for one.
Too Personalized
Things like bright paint, too many built-ins, and other custom elements to a home may be a large deterrent for many buyers. Most people want to put their custom touch on their home, not buy an overly-customized one. Neutral colours and simple designs will always sell easiest and for a higher price.
Converted Garages
Lots of people find new uses for their garages - from home gyms to woodworking spaces. Although this is an awesome addition for you, plenty of people just don’t need these modifications! Make sure they are removable, and if possible, remove them before showings to keep your house as much of a ‘blank slate’ as possible.
Too Much Carpet
Another thing buyers tend to dislike is a lot of carpet in a home. Carpet holds stains and smells is difficult to clean, and tends to show worse than hardwood flooring. If at all possible, removing carpet from the main areas of the house (living/dining rooms especially), will help your home show better. People are typically more forgiving when it comes to bedrooms and basements with carpet, but if it is within the budget, removing all carpets will most likely perform best on the market.
Kitchen and Bathroom Design
Finally, your kitchen and bathroom design are big deciding factors for buyers. Put simply, these are the places where people get the most stuff done - most mornings are spent preparing for the day in the bathroom, and at least 3 times a day families are in the kitchen preparing food. These spaces need to flow, have storage, and have space. If you have the financial ability to do one or two larger renovations, updating these spaces will give you the most bang for your buck.
Not everything that lowers the value of your home is in your control, and that is okay! There is a reason you chose this home, and there will be a reason someone else does. But having knowledge about what is currently impacting the value of your home helps you be aware of why a certain price may be appropriate. A great real estate agent will be able to evaluate these things for you and help you either improve the way your home appears to a buyer despite these issues, change the issues themselves, or both.
