9 Factors That Can Lower the Value of Your House

9 Things That Can Negatively Affect Your Home's Value

Getting your home ready for sale is quite a task. Even if you've maintained it well, it's important to consider whether potential buyers, real estate agents, and appraisers will be impressed. Ultimately, presenting your property in its best form and pricing it competitively will increase the likelihood of attracting interested buyers and securing a favorable sale. Before listing your property, carefully consider the following factors to ensure a smoother selling process.

1. Not keeping up with the trends

If you didn't spend much on home improvements to save money or simply haven't had the chance to update certain aspects of your home, neglecting to keep up with the trends could negatively impact your home's value. According to Adrian Muller, the head of Hudson View Appraisal Services, homes lacking features that are standard in the neighborhood, like having a patio or pool in Florida, for example, will generally be valued at a lesser price compared to their counterparts.

2. Property near shale gas wells 

A recent study by economists from Duke University and Resources for the Future, a nonprofit research institution, highlights the adverse effects of shale gas wells on the property's value. The research specifically focused on Pennsylvania homeowners who used groundwater for their consumption. The study revealed that those residing within 1 1/4 miles of a shale gas well experienced a substantial decrease in their property values, dropping to as much as 24%. 

3. Physical depreciation

While you might not be too concerned about the wear and tear on your driveway, appraisers certainly are. It's advisable to address this issue by resealing your driveway before listing your house on the market. According to Muller, President of Hudson View Appraisal Services, substantial cracks and potholes on the driveway surface can be a cause for concern during the appraisal process. Taking care of these issues beforehand can positively impact the appraisal of your property when staging it for sale.

4. Maintain the curb

The first impression your home creates matters when potential buyers drive by or take a walk-through. A messy or unkempt exterior can negatively impact a buyer's experience. According to Case Friedner, a real estate broker, it's important to ensure that the lawn, walkway, and driveway are free of debris and present a clean and tidy appearance. Furthermore, she recommends that the front door, doorframe, and window trims be painted to enhance the overall curb appeal.

5. An unkempt yard

Enhancing your home's landscaping can positively impact its value, as stated by the Appraisal Institute. If your lawn has been neglected, it's advisable to take action now. According to Friedner, it's important to replace any dead or dying shrubbery with healthy and lush plants. This contributes to a well-maintained exterior, boosting the overall appeal of your home and potentially increasing its value. Keep in mind that landscaping, while beneficial, is a hidden expense that comes with maintaining a home.

6. Weird landscaping design

While maintaining a well-kept lawn is important, it's advisable to avoid overly quirky or personalized landscaping, as it may adversely affect your home's appeal. Chris Danuser, a real estate professional in the New York City area, cautions against incorporating "too-personal touches" in landscaping because it might deter potential buyers who envision creating their style. Similarly, she recommends trimming back large trees that lean over the house to mitigate the risk of collapse onto the roof. These measures contribute to a more appealing and safe outdoor space, potentially attracting buyers.

7. Pool

Despite the joy you may have experienced during the countless summers by your home pool, you should not assume that potential buyers share the same sentiment. Heather Kandawire, a real estate agent in northern New Jersey, advises caution, stating that while some buyers envision idyllic summer days by the pool, a majority of them do not prefer homes with pools.

The apprehension stems from concerns about maintenance, increased insurance costs, and the overall added expense associated with pool ownership. However, she notes that luxury homes on spacious properties tend to fare well with such features. In such cases, the pool is often seen as an asset rather than a burden.

8. The Koi pond

If your property features a koi pond or another decorative water element, it's essential to maintain it well. While Adrian Muller acknowledges the potential of such features to enhance home value, Kandawire emphasizes the importance of presenting a well-maintained pond when selling. In her experience, she has rarely encountered a perfect koi pond among the homes she has shown. Despite the potential value addition, she advises sellers to prioritize cleanliness, urging them to ensure the pond is thoroughly cleaned before attempting to sell the property. A well-kept water feature can largely contribute to a potential buyer's impression of the property.

9. The street traffic

Residing on a busy street may negatively impact your property's value. According to real estate broker Mary Case Friedner, homes situated on or backing up to busy thoroughfares typically hold less value compared to identical houses located in quieter areas. The noise, traffic, and other disruptions associated with busy streets can be a deterrent for potential buyers, influencing the perceived desirability and, consequently, the market value of the property.