People often recommend investing in homes and real estate since it is an asset that increases in value over time. However, did you know that some things actually depreciate the value of your home? Real estate might be one of the most significant investments one would make, and yet many are not knowledgeable about the factors that can devalue it.
Just in case you do not know yet, here are some threats that could decrease your home’s value and how to protect its value.
- Sinkhole damage.
Even though home insurance covers sinkhole damages by any chance, having this damage can still devalue your property. Some sinkholes result from natural factors and others from human activity. Without warning, this occurs and damages numerous homes.
Natural sinkholes are something that cannot be predicted. However, for human-caused sinkholes, there are some signs to watch out for to help you avoid getting that property. Man-made sinkholes are usually caused by the removal of groundwater, a collection of water on the ground, areas with fluctuations of heavy rain and drought, and the collapse of an abandoned mine.
If you see any of those warning signs, it is better to avoid that piece of property since sinkhole damages bring down the price of your property by 30%.
- Power plants and city dumps.
Having residential property near a city landfill or power plant can drag the value of your property down. Power plants perceived harmful effects of the pollution emitted by plants, which decreases the likelihood of anyone wanting that property. Because of this, the value of your home goes down by 3% to 7%.
If your home is near a landfill, most probably, this is in a very populated area of the city. Because of the smell from landfills and population, there are fewer people who would like to purchase that piece of land; hence, the value of the property goes drops by 5.5% to 7.3%.
- Noisy neighbourhood.
Noisy neighborhood tends to scare off buyers since most people prefer peaceful homes. Furthermore, noise is mostly associated with mess and compromised safety.
If a neighborhood is noisy, people perceive it as a bad neighborhood. Because of this, the value of your home goes down by 5% to 10%. Before buying property, you must be aware of the reputation and whereabouts of the community since it can affect the value of the property.
- Registered sex offenders.
Always, always scout the nearby community of your property. Know the reputation of the place because this can gravely affect the value of your home.
Having criminals, such as sex offenders, known to be living in the community can drive down your property’s value by 12%. Even though it is not your fault living beside a registered sex offender, it can still devalue your property. So, carefully vet the community and area where you’re going to buy a property.
- Certain renovations.
While renovations often increase the value of your home, some renovations can make your home less attractive when you decide to resell it. For instance, an addition of a swimming pool can drive off home buyers who do not want to maintain pools since this can be expensive.
Furthermore, landscaping and gardening can also drive out buyers who don’t want to deal with landscaping maintenance. Keep your renovations simple and practical. An example of a simple yet practical renovation are Raised Floor Solutions.
- Weird colors
The first thing buyers will notice is the visual appeal of your home. The color of your home plays an important role in the deciding factor for purchasing the property.
Sometimes, if the color or paint stands out in a wrong way, the selling price of your home could significantly go down. The same goes for the interiors of your home. Keep the colors simple with primary calming colors. You don’t want to discourage buyers with flashing or unusual colors. You don’t want to scare off potential buyers.
- Noise pollution
Homes that are close to train tracks, the airport, or the highway usually have constant noises. Because of this kind of noise, the value of your home can also drop down. Most people do not want to live near the airport, which is why your home gets devalued. Avoid buying homes near these areas to avoid this problem.
Surprisingly, there are many other external factors that can decrease the value of your home. Considering the factors listed above, you can now make the best decision to preserve the value of your home and avoid things that can devalue it. Hope that this article can help you dodge and look out of some taboos that can decrease the value of your home.
December 6, 2018