For homeowners who are planning to sell soon or simply want to keep on top of their property value, it is important to know what could be harming the value of your house. Many factors are outside of your control but there are some areas where you could potentially minimise its influence.
Listed below are a few key factors and suggestions to improve your property’s value. To get a better measure of your Sydney property’s value, engage with a house valuer in New South Wales to find out what is affecting your home and other properties in your area.
What factors negatively affect your home’s market value?
These are a list of common factors that can cause a property to lose value or to be valued lower than similar properties. Find out what you can do to lessen any negative effects.
Poor maintenance
A lack of regular and effective maintenance can be catastrophic for value. If the building shows clear signs of deterioration (cracked roofs, leaks, damaged pipes, faulty electric work), buyers will be deterred by the costs and effort involved in fixing everything. As such, the value of the home is drastically decreased.
Solution:
Regularly assess the state of your home. Keeping your property well maintained is key. One small step is to ensure you clean your house internally and externally and tend to the garden. This allows you to spot anything that is amiss far more easily, allowing you to act quickly and prevent any serious issues later.
Undesirable location
As location is one of the most significant contributing factors towards a property’s value, an undesirable one can have a significantly negative impact on value. High crime rates, noise pollution, low employment, and lack of cleanliness can all reduce a house’s worth.
Solution:
There is not much you can do to change your location once you have already bought and settled into a property. What you can do is prevent buying property in an undesirable location. Do your research beforehand and have a pre-purchase valuation completed before finalising a buy to avoid any surprises.
Of course, if the quality of your location has changed over time due to poor management of the council or other circumstances, you will have to assess the situation, gather what information you can and see if selling immediately or being patient for better timing is the best action.
Awkward layout
A poorly designed house will deter potential buyers and ultimately reduce the market value of the home. Impractical floor plans, lack of movable space, and cramped rooms will be off-putting to potential investors due to the costs involved in renovating.
Solution:
Different eras of home building see different choices in layout and design. A home built several decades ago may not have a layout that suits modern lifestyles. If you prefer an older property and layout is something you want to fix, you should have an inspector examine your home to see if renovations are possible considering the structure of the property.
If you are building or renovating a home, try not to follow any trends and consider the functionality and comfort of a home before committing to a layout.
External factors
There are also several external factors beyond your control that can impact your home’s value. Environmental risks, sudden economic downturns, or changes to zoning laws can immediately decrease the price of a home.
Solution:
There is very little you can do to help the value of your property if it has been affected by such conditions. The best thing you can do is stay informed, consider your options, and see what can be done according to your financial situation.
Summary
Purchasing a home is a long-term investment, and property owners should do what they can to increase its value. In the ever-changing real estate market of New South Wales, valuation services can help you keep track of market value.
Poor maintenance, undesirable locations, and a bad internal design all result in a lower home value. Owners should do all they can to repair damaged walls, pipes, electrical work, and more. Consider your personal and financial situation before making any major decisions when it comes to buying and selling property.
To examine your property or a house you plan to purchase, a house valuer and their expertise can help you determine its exact value and the influences helping or harming it.
