Perhaps you are wondering whether or not the absence of a bathroom or a designated parking spot has an impact on the value of your house. We will go over 13 factors that might bring down the value of your home in this post. By doing so, you will be able to keep the value of your property when it comes time to sell your home and secure a favourable mortgage.
Factors that bring down the value of a house
So, what factors cause a house to lose value in the current market?
#1. Untidy exterior
When it comes to selling your home quickly, one of the most important factors to consider is the kerb appeal of your property. In the case you fail to provide your home with the initial enticing exterior look that it requires, prospective buyers might not be interested in scheduling a viewing or exploring the property.
A survey found that it takes home hunters just 10 seconds to determine whether or not they like a property based solely on the first impression of the exterior appearance. Interestingly, the study discovered that 44% of the respondents stated that they would attempt to reduce the asking price of a house by 10% to 20% if it appeared to be unappealing from the outside.
Therefore, if you want to make sure that the exterior of your house looks its best, it is a good idea to clean it up! A fresh lick of paint, the addition of a hanging basket or a potted plant, the mowing of the lawn, the washing of any windows, and the removal of any bins from the front of your property are all examples of some of the things that could be included in this category. All of these little upgrades could increase the value of your property.
#2. Energy efficient
Since the introduction of Energy Performance Certificates, energy efficiency ratings have become increasingly important to buyers. Renting a house with a poor energy efficiency rating (less than a “E” grade) becomes unlawful in April 2018.
While it may not affect homebuyers, it might discourage buyers looking to buy and rent out properties. As a result the property value could be effected as potential purchasers may decide to make a lower offer instead, as some buyers might view the lack of energy efficiency as money lost in increased energy costs once they’ve moved in.
A greater house price is correlated with a higher energy efficiency rating. The value of the home might rise by up to 14% with a higher energy efficiency rating, positively impacting the property price.
The energy efficiency rating of your property can be raised by implementing smart upgrades that enhance the overall value of a property.
- Insulating your property
- Install lagging jackets in your water pipes.
- Switch to energy-efficient bulbs.
- Switch to a boiler that uses less energy.
- To find out what particular steps to take for your property, review your EPC.
#3. Extremely extensive remodelling and customisation
Contrary to what most people believe, there are a number of home improvements that could potentially lower the value of your home without you even being aware of it. Although there is such a thing as over-improving your house, it is important to note that carrying out the wrong type of “improvements” might be detrimental to your home and will undoubtedly discourage potential buyers.
As a result, it is wise to determine what will add value to your property rather than detract from it before making any improvements. If you want to make any changes to your property, it is a good idea to keep it basic and avoid over-extending or over-personalising it. Some neutral paint colours or basic patterns might be a better option that a choice of featured wallpaper that is specific to your own taste. These are things that can be significant turnoffs for potential buyers considering purchasing your property.
For example, converting a double bedroom into two single bedrooms, or installing AstroTurf on the lawn are both potentially problematic improvements that could affect the valuation of your property.
#4. An excessive amount of mess
When you are getting ready to put your house up for sale, it is a good idea to clear out the mess and reorganise the rooms in order to make the most of the space that’s available. The trick is to create the impression that the room is larger than it actually is without having to invest any extra cash. If your home is overstuffed with furniture and/or junk, it is a good idea to have a clean out, or at the very least, place certain items into a self-storage facility for safekeeping while you are promoting the property. This will allow you to keep your home secure while you are selling it.
People who are considering purchasing a home may ignore poor choices in interior design, but if they are unable to picture themselves living there with their family and their own furniture, it can be hard to understand why they would even consider making an offer.
#5. Any unresolved issues in the house
It is a good idea to have a survey carried out on your home before you sell it. This will allow you to determine whether or not there are any problems that may need to be fixed before the process of selling your property can begin. You will need to provide a home report anyway, but by taking these steps before your house is put up for sale, you will ensure that any survey by a potential buyer does not come with any unpleasant surprises or unexpected costs, and there will be less reasons for prospective buyers to submit an offer that is significantly lower than the asking price.
Get a survey done on your house before you put it up for sale. It is a wise move. For example, if there are signs of subsidence on your property or Japanese knotweed growing in your garden or the garden of a neighbour, this will need to be eliminated or mentioned in a straightforward way.
#6. Problem neighbours
Neighbours are either loved or hated. Neighbours may be a genuine problem in certain situations, with some homeowners claiming that they are unable to sell their home due to neighbours, whether it is an untidy house, being noisy, or starting a disagreement. In fact, according to our research, an astounding 70% of British buyers would withdraw an offer on a home due to noisy neighbours.
When selling your home, you must disclose noisy neighbours, which may reduce its value. Thus, before notifying your local environmental health or planning authority, or the police, it is best to deal with problem neighbours quietly and peacefully.
#7. The name of the street, the house number, or both
Despite how absurd it may sound, superstition can have a significant impact on the value of single-family homes. Is it possible to change your house number to a name? If you live at number 13, you might wish to look into this possibility. There is also the possibility that the names of streets and houses can have a detrimental effect on the value of a house.
#8. High crime rates
Having a high crime rate in your area may discourage potential buyers from purchasing your house. According to Direct Line, nearly half of 2,000 British respondents indicated they would examine crime data before making a booking. Moreover, 47% would avoid purchasing a property in a high-crime region.
Despite the fact that there is not much you can do to reduce the amount of crime in your area, there are some things you can do in order to fight crime, such as becoming a member of the Neighbourhood Watch community within your community. It would also be a good idea to get a group of people who live on your street together to discuss ways to reduce the amount of crime that occurs there and then present a plan to the council that oversees your neighbourhood. One way to avoid loitering would be to establish a community centre or a park, for instance.
#9. Having pets at home can impact house price
Since pets are considered to be members of the family, it is not surprising that you would permit them to reside in your home, and at the same time, you want to show them to potential buyers. This, however, is not acceptable to some people. It is important to keep in mind that not everyone has the same level of enthusiasm for pets as you do, and some people may be completely turned off by them.
Therefore, when you are showing potential buyers around your property, it is a good idea to remove any and all signs that indicate the presence of a pet. In order to get your pets out of the house, you should put their belongings in the car if someone comes over for a showing, and you should also encourage someone to take them for a walk.
#10. If local schools are ranked poorly it devalues a house
Rightmove reports that parents in England are willing to pay up to £52,000 extra for a property to ensure their child attends a “outstanding” primary or secondary school. The situation is no different in Scotland where a property being in the correct catchment area or not could make all the difference on how much someone is willing to pay to buy a home.
If the local school receives a poor assessment from Ofsted, you should be aware that this could result in a decrease in the value of your property.
#11. Making modifications to a garage
There is no doubt that converting a garage into a livable space, such as an office, a gym, or an additional living and dining room, can significantly increase the amount of space that can be used within your home. Nevertheless, it is possible that this conversion may not considerably raise the value of your home; in fact, it may even decrease the value in some instances. A lot of homeowners are genuinely looking for somewhere safe to store their car off-street or extra valuable storage.
#12. Costly home appliances being installed might not add value
It is possible that the next buyer will not place the same value on the appliances that you purchase as you do. Although a brand name and a few additional fancy features might appear to be a good idea at the time, they essentially perform the same function as any other appliances, and you may find that you spend a great deal on them, only to move on and discover that you have lost out when the new buyer does not want to pay for the additional cost.
#13. Open-concept living space
Given the amount of light and additional space they provide, open plans can be very popular. However, in the current world of working from home, having additional space for an office or separate living area has become a highly valued commodity. Even though you may have the floor space to command a high price, you may find that your value decreases if the individual rooms are not included.
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