ScaredyCatGuide to Real Estate: Five Things that Devalue Your Home
Whether it's our home or a rental property the goal is t0 maximize the value of it when looking to sell or rent it. Let's talk about things that devalue a home so we can avoid them.
Five Things that Devalue Your Home 1.) Continued Neglect of Maintenance
Trust me, I know it stinks to spend money on things that are not a must. However, the more you wait to fix and/or improve things the worse they become often times, thus costing even more.
Items like cracked windows and broken shower tiles are examples. By leaving them broken you are exposing yourself to possible water damage, which adds an additional layer of repairs.
Don't forget the cosmetics either. A fresh coat of paint before putting a property up for sale does wonders.
2.) Illegal Improvements/Additions
This should be obvious. If you do improvements that are not on the up and up you will run into issues when selling. Adding a third bedroom without pulling the proper permits will screw you in the long run. You will not be able to sell the property as a three bedroom, but as a two, which will both be appraised and sell for less.
3.) School District Rating
This isn't a concern for buyers or renters without children, but that is only a part of your potential pool. It will be hard to get a top dollar sales price or rental rate if the property is in a poor school district.
There isn't much we can do to control this outside of doing research before acquiring the property and keeping a bird's eye view on what is happening in the district while owning the property.
4.) Outdated bathrooms and kitchen
If the appliances are from the era of your parent's childhood, its time to replace them. If there is anything you want to spend money on it's the bathrooms and the kitchen.
Be sure that everything is functional in addition to having at least a tid bit of eye appeal. The bottom line is a buyer or renter will pick your property over another for something as simple as having a nice looking faucet - it's true.
5.) Curb Appeal
If you have a property with a front yard, be sure it's presentable. You do not need beautiful expensive landscaping, just whole and presentable landscaping.
Having a nice lawn with no large dead or brown spots coupled with a fence that is painted and free of any breaks is simple enough yet makes a difference.
Conclusion
Those are five things that devalue your home. As you can see none of them are big issues to avoid or amend so be sure not to let them drag on your property's value.
If you enjoy my posts and property investing tips, then you will love the book:
ScaredyCatGuide – Investing in Rental Properties
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