Owning a home is about the biggest investment you will make in your lifetime. You want to ensure your property either maintains its value or increases it. Your home is worth what one is willing to pay. Several factors determine house worth. For instance, the physical structure, coverage of square foot, and structural integrity. The neighborhood also determines your house’s worth. Peaceful and serene neighborhoods tend to be favored over rough neighborhoods.
Here are some signs the value of your home is dropping.
1. Tax Valuation
Although property tax isn’t exactly your cup of tea, it’s a great way of evaluating your house’s worth. For instance, if this month’s property tax is lower than the previous month, it indicates that the county appraiser thinks that your house has decreased in value.
2. Short Prices on Nearby Homes
Once your neighbors start selling their houses at low prices, it will decrease your house value. The neighboring houses don’t have to necessarily fit the same profile as yours in terms of square footage or appearance. The fact that they are in your immediate neighborhood will affect the price rates all round.
When one is searching for a home, they want the best of the best. If your house is one from the ’90s or earlier years, it might not be favored as it may lack the modern touch, affecting the price downward. Renovating your house will take the value up a notch. After all, you wouldn’t fancy an outdated home, would you?
4. House Maintenance
Accumulation of problems will lead to a reduction in house value. Maintenance is key. For example, fixing broken pipes or getting rid of mold and pest infestation. I mean, who would want a mouse or roach greeting potential buyers at an open house, right? Maintaining your house alone is not enough. Yours might be top-notch while your neighbors have let theirs fall into despair. This may affect your house value.
5. Lack of Curb Appeal
First impressions are everything. They determine whether the buyer will want to go in or leave. The trick is to keep your lawn tidy and bushes trimmed. The physical appearance should also be presentable, especially when it comes to faded or peeling paint. It wouldn’t hurt to add a fresh coat, enhancing the presentability. The neighbors’ curb should be taken into consideration too. If theirs is unkempt, it will degrade the value of your property by extension. In as much as you can force them to keep their curb in order, you may offer to help them out here and then. After all, it will be your loss if their curb is not appealing.
6. The Economic Slowdown in the Neighborhood
Nobody wants a place that is failing or slowly crashing. When businesses such as supermarkets, café shops, and even schools start closing or relocating to greener pastures, it means job opportunities drop drastically. This will negatively impact the value of your property. Once you notice the closure of businesses, it would be best for you to act quickly and put your house on the market.
7. Overstaying in the Market
If your house has stayed on the market longer than the expected duration of 85 days, one will inevitably think that there’s something wrong with it. To avoid this dilemma, cross-reference with an agent for a suitable price to avoid overpricing.
8. Neglect of Public Areas
When businesses start closing and relocating, tax revenues will drop. Leaving the remaining population with budget cuts. Recreational places such as parks will be the first to feel the blow. With time, they’ll become unkempt and neglected to make people lose interest. As a result, property prices will be negatively affected.
9. Increase in Crime Rate
This will lower your property value. After all, nobody wants to live in a dangerous neighborhood. At this point, it would be best to set up a neighborhood watch program to ensure safety and peace of mind. This would, in turn, increase your property value.
10. Increase in Rental Property in Your Neighborhood
If you notice an increase of your neighborhood’s properties with rental signs, it is highly likely that the owners have vacated, tried and failed to sell, and have opted to rent out. This devalues all the properties in the neighborhood.
When there is a major decline in the economy, businesses shut down, and joblessness increases, leading to unserviced mortgages. In such an event, lenders foreclose, and the number of properties on sale increases. To attract more buyers, they will erect foreclosure signs, which reduces the value of other properties in the area.
In summary, if you’re looking to sell your house, keep in mind that timing is key. Whilst it may be a daunting task to handle on your own, you may want to engage the services of an expert in the field like We Buy Any Home. Not only do they commence a valuation upon your instruction, but they also assist in identifying buyers and navigate through the whole process with you.