Home resale value is something most homeowners strive to increase so that they can see a profit when it’s time to sell. Unfortunately, there are many things that they accidentally do that have the opposite effect. Here are a four ways that you can lower the value of your home without meaning to.
1. Not keeping up with maintenance. This is the easiest way to lower the value of your home. Not keeping up with maintenance typically leads to larger problems down the road or hidden problems that are discovered when you try to sell your home. If you notice a damp spot on a wall or a wiring issue that you don’t ever look into, you could be setting yourself up for massive problems in the future. Damp spots can turn into huge mold infestations (which must be included on your home disclosure and can cause potential buyers to pass on your home) and wiring problems can turn into electrical fires that cause massive damage and put you and your family’s lives at risk. Pay attention to the tiny things that come up along the way and try to keep your investment in the best possible shape.
2. Trying to DIY when you don’t know what you’re doing. Incorrect installations and work not done up to code or with the proper permits can also lower home resale value and be a turn off to buyers since they’ll have to make the necessary repairs. Trying to do some things yourself is fine, but consider hiring a professional before you make any massive changes.
3. Renovating your property too much. Upgrades and renovations normally add value to a property, but it is possible to overdo it. If you live in a neighborhood where homes are in the $300,000 range and you add $200,000 worth of upgrades to your home, it’s going to be challenging to find someone willing to pay the full value for your property because it will be much more expensive than the other comparable homes in the neighborhood (if there are any). Even if it does have the added value, someone interested in living in a luxury home probably wants to live in a luxury neighborhood as well. Be aware of the ROI for your upgrades and try not to price yourself out of your neighborhood.
4. Not updating it at all. Not making any changes is another way that you can accidentally lower the value of your home. If your home is dated, buyers are going to consider the cost of updating it and might try to offer you less for it. There’s a fine line between not enough and too many upgrades, but it’s a line that’s important to stay close to.
If you take care of your home and do your best to make sure that it keeps up with the times, you shouldn’t have a lot of trouble with a decrease in your resale value. As long as the market continues to grow, homeowner’s can expect to see higher sales prices as long as their homes are in good condition.