Common Home Value Killers

While there are a lot of aspects that make a home highly desirable, there are also a lot of factors that essentially harms its overall real estate value—the equilibrium of things, so to speak. Here are some of the most common things that can hurt a property’s value:

Location – Truth be told, a great-looking house wouldn’t be desirable if it’s standing close to a dump. On the other hand, if the same home is built in a community where it would physically stand out, then it may become an eyesore. A bad location can vastly affect a home’s value—in some cases, the devaluation can go down as much as 50 percent.

Noisy neighbours – Unless a home buyer doesn’t mind hearing neighbours blast Metallica all day, then noise is a potential home value killer. According to Appraisal Institute president Richard Borges, a home’s value can go down about 5 to 10 percent because of noisy neighbours.

Outdated features – Lack of updates can bring a property’s value down 5 to 10 percent. A lot of buyers tend to be pickier nowadays. If they see an outdated kitchen or living room that needs a lot of work to make it look the way they want it, they’ll likely move on to their next choice.

By considering (and avoiding) the factors above, a prospective homebuyer can see to it that he invests in a home that won’t prove to be a money pit in the long run.