Education and news for smart DIY landlords!
Real estate is considered one of the safest investments because the value of most lands and houses tends to increase over the years. Yet, it’s also important to be aware that certain factors can impact your home’s value. In this article, we discuss four of these factors and what you can do if your home is losing value.
As you’ll notice from the list below, some circumstances are within or out of your control. Knowing them is essential, especially when you're planning on selling your home.
Timing is critical in selling a home. Buyers want to move before the school year starts, so they usually choose spring or summer. However, it's harder for them to move once fall arrives due to the cold weather. Since fewer people are buying during the fall and winter seasons, there is less demand and less competition, resulting in low home sales.
Read more: How to Stage Your Home for Winter Sales
A damaged home leads to a damaged price. Once a natural disaster damages your property, its value can significantly depreciate. It's even more difficult if your house is prone to floods, hurricanes, or other natural disasters.
Your neighborhood can also affect the value of your property. For example, if many properties near you are in foreclosure, your house value will lower because buyers will want to choose the lower-priced homes nearby. Having high crime rates can also repel buyers due to safety concerns.
Even if there are no natural disasters, you still need to maintain your house. Otherwise, you may experience a leaky roof or damaged tiles and walls, harming your wallet and your home's property value.
Some things are out of your control. For example, mortgage rates will decrease when the economy is down. The same goes when you have a bad neighborhood or are close to some facilities. The good news is, there are still things that you can do to improve the value of your home and sell it at a higher price!
Homes are priced by the livable spaces they contain. Adding a bathroom or bedroom can increase the value of your home.
First, of course, is to clean your house. Go through your cabinets and start to remove unnecessary stuff. It will make your house look appealing to buyers. Fresh-coat paint can also make your house look newer and more appealing. You may use wallpapers if you want. Just make sure that there's no cracked or damaged wall.
If there are damaged walls, floors, or other parts of the house, you need to repair them. It's difficult for people to consider buying a house full of damages. Once you're done repairing, maintain your house to avoid further renovation, which can hurt your wallet.
Read more: 10 Essential Tools Every Homeowner Should Own for Maintenance and Repairs
A survey showed that homebuyers prefer houses with energy-efficient features. This feature includes lighting, appliances, solar panels, and a thermostat. Use smart appliances and update your systems to save more energy. This may cost you money, but your home value will increase more than what you spent.
Research and understand how property valuation works to estimate your home's value. You may also contact a realtor or a home designer to determine which part of your house needs improvement. Ultimately, you need to stay updated on the trends in the real estate market, so you know when is the best time to sell your house.