Ever thought your property was worth one price, only to find out it was worth much less? Even worse, ever had your home sit on the market for 6 months without selling? This is something that happens to many people, for a multitude of reasons. Check out these 7 things that can kill your resale value, so you know what to expect going into the process!
1. Not keeping up with your neighbors. When you are considering listing your home, it is important to know what other homes are selling for in your neighborhood and what features they have. Failing to update your home if your neighbors have, can potentially hurt the value of your home, especially outdated kitchens and master bathrooms. These two rooms have the biggest chance of making or breaking a deal, so be sure at least these rooms are updated if you want it to sell in a reasonable amount of time at a price that works for you.
2. Cracks in the pavement. This might sound like an odd one, but it definitely can have an affect on the value of your home. Appraisers will look for signs of deterioration and this can raise red flags and potentially lower what price they value your home at. If your driveway or sidewalks have cracks, you should have a foundation expert come out to take a look. If they check it out and find nothing wrong foundation wise, consider resealing the surface of the cracked area before putting your home on the market.
3. Lack of curb appeal. You’ve heard it time and time again. You never get a second chance to make a first impression. That being said, you want your home to look appealing and inviting from the outside. Take the time to repaint the house, update landscaping, and make sure any debris is cleared from your front yard. If your home looks unappealing from the outside, many buyers won’t even want to give the inside of your home a chance.
4. A pool in the backyard. This one might sound surprising, because many people believe a pool adds a tremendous amount of value to your home. While a pool does add some value, keep in mind that not everybody wants a pool in their backyard. Many buyers fear the extra expense and maintenance of a pool, as well as the additional insurance and liability of owning a home with a pool.
5. Carpet everywhere. Most buyers do not like to see carpet anywhere except for the bedrooms or the upstairs. Of course there are some exceptions, but as a rule of thumb, try not to have carpet on the bottom floor except for bedrooms. The home will more than likely sell faster and you’ll up your home’s value by adding either wood or tile in the main areas.
6. Over-improving your property. While it is important to have an updated house, be careful not to over-improve your home for what is typical in the neighborhood. If most homes in your neighborhood are 3,000 square feet, don’t add an addition to make your home 5,000 square feet because you will not get your money back when you go to sell the property. Don’t spend money on an $60,000 master bath if the average sales price in your neighborhood is $250,000. The further you get from normal in your neighborhood, the less value you will get for your investment.
7. Bad floor plan. If you have an awkward floor plan, this can negatively affect the value of your home. If you have to pass through bedrooms to get to another room, or if the only bathroom on the main floor is the master bath, know that this will net you a lower price for your home as many buyers will be turned off by the inconveniences. Another problem is “bedrooms” not having closets. To be considered a bedroom by an appraiser, the room must have a closet.