The value of real estate, theoretically, does not depreciate. When you buy a piece of real estate at a certain price, you can expect to get gains over a period of time. These gains are very important when it becomes necessary to sell the property for whatever reasons that could necessitate such a sale.
In actual practice, however, there are possibilities that could cause your property’s value to go down instead of up, as expected. It helps to be aware of these five issues that may cause your home’s value to sink to prices lower than the cost of acquiring it.
It’s fun to design your interiors and the outside areas of your property. After all, we all want to make everything we own to be customized to our own preferences or personalities. You could find yourself installing an eccentricity or two in your front yard as a means to express yourself. That, however, can affect the actual value of your home when it’s time to sell. If you installed too many things that the next owner will not find useful, then it will be difficult to sell because prospective buyers will start thinking about the extra costs of removing those quirks of personality that you leave behind.
The only constant thing in this world is change, they say. Hence, you can expect your neighborhood to change with the times. Unfortunately, some changes could negatively affect the value of your property. The construction of a cell tower nearby, or close proximity to infrastructure that can cause light or noise pollution could also bring down the resale value of your property.
You might want to remove that candelabra that has been a centerpiece of your property for so many decades, or cover up the fire place. Maybe you’re just trying to make the home look modern, but that can actually lower the value of your property. Houses that have features that reflect the period of its construction can actually sell at a better place than those properties that have been “modernized” by removing those period features.
You may want to think twice about removing a bedroom in a property or turning it into non-essential space. Buyers are particular about the number of bedrooms in a property and, if you have converted a bedroom into a stockroom, for instance, buyers will be conscious of buying as it means additional expenses to turn it back to a bedroom.
Taking a sizable front space for granted and stuffing it with clutter is not only aesthetically an eyesore, but will be a factor to discourage potential buyers from acquiring your property when the time comes. Make sure that there’s still plenty of space left your landscaping, and avoid as much as possible putting up too big a shed or too many potted plants.
If you’re having trouble with your mortgage and is thinking of selling, why not contact a mortgage broker instead? These professionals can help you find refinancing options that will give you fair interest rates and ease your financial burden.