By Melissa Dittmann Tracey, REALTOR® Magazine
Any number of things has the potential to devalue a property and turn off buyers. According to a recent article by Investopedia (“Sellers Beware: 8 Factors That Devalue a Good Home”), here are a few common factors that often devalues a property ... Do you agree?
Nearby eyesores. Cell phone towers or power lines overlooking a home can make some buyers skittish about the property. Also, messy neighbors or unsightly abandoned nearby homes also might devalue your listing (e.g. According to research by the Center for Responsible Lending, foreclosures will affect 91.5 million nearby homes by 2012 and reduce property values of these homes by $20,300 per household.). Read: Battling the Neighborhood Eyesore
Renovations gone wrong. Investopedia refers to this as the “DIY nightmare” when home renovations are done poorly.
While renovating a property can help increase its value, renovations that are not done properly can have the opposite effect. If buyers look at the renovation as something they will have to redo, they may bypass the property, or submit a lowball offer to factor in the “DIY nightmare.”
Bizarre design choices. Some buyers just can’t see past that pinkish honeysuckle accent wall, even if it is this year’s “color of the year.” Unusual paint colors or home design choices that are overly trendy can be turnoffs and even devalue the home. Also, customized spaces that are no longer serving its function, such as a converted garage that now functions as a home gym or bedroom, might make some buyers think twice. And even “a professional chef's kitchen or marble bathrooms in a modest home suited to first-time buyers won't likely provide a good return on investment,” the article notes.
Uninviting curb appeal. The exterior of a home offers buyers their first impression of the property--so if the exterior looks outdated or in poor condition, buyers likely will assume the same applies for the inside too. Old fences and sheds can devalue a home. Also, gardens should be weeded and lawns freshly mowed so buyers won’t misjudge a home by its exterior cover.