Wednesday, October 16, 2013

Factors That Can Decrease Your Home's Value

If you are thinking about selling a home now or in the near future you will need to have a good
assessment of your property and what it is worth. This will help when you need to create a listing
price for your home to go on the market. This can be a pretty straightforward process if you look
at comparable homes in the area, run an analysis and determine a fair market value for your home,
but what happens when there are factors you can't control? Sometimes there are things beyond your
control that happen that can affect how much your home is worth. Let's take a look at some of
those things that can decrease your property value.

1. The location of the home.

If you moved into a great up and coming neighborhood years ago, you may have taken the time out to
be sure it would be a safe place for you and your family to grow. This is always the goal when
selling, but over the years what happens to the neighborhood is something that is out of your
hands. One unsavory neighbor can attract crime and other activities that may make your location a
less than desirable one and cause your area to decline. Once people start to abandon the area the
vacant and shuttered home can cause a further decrease in property values in your area.

2. Seasons

The weather patterns have a  tendency to change over time.  Areas that were once safe from
accidents and natural disasters are now experiences these things each and every year.  These
events and the damage they do to the area can cause the houses to look less attractive to someone
that is trying to find a nice safe place to settle down in.  when people are selling a home in an
area like this they may also be selling very cheaply just to get out of the area.

3. The noise level of the area

Most people want to live in an area that they are not going to be disturbed in.  If you live near
railroad tracks, an airport, or any other loud area it can have a negative impact on your property
value.  Some other places that might have excessive noise that you might not think about are a
fire station, police station, or even a hospital.  Homes that are in and around high traffic area
can also have excessive noise levels that some might not like.  Although you can still sell your
house quickly in these areas you should expect to get a lower price then if the home was in a
quieter neighborhood. 

4. Foreclosures around your area

If your home is in a area that was unfortunately included in the economic crisis over the past few
years many of your neighbors may have not been able or given up on paying their mortgages. Once
this happens a number of properties go into foreclosure bringing down property values all around.
Research indicates that living within 250 feet of a foreclosed property can decrease your property
value by at least 1% per foreclosure in the area.

5. The number of sex offenders in the area

Sex offenders are now required to register themselves with their local authorities when they move
into an area.  This information is all public knowledge and something that anyone with kids, or
planning to have them, will want to know about.  The larger the number of sex offenders, and the
closer you are to them, the more it will effect your property value for the people who buy houses
and have children.

Knowing these things when selling a home, or even when you are looking to buy, can help you be
realistic about the value of your home when you go to sell.  If your house has one or more of
these factors working against it be prepared to lower your offer.
Is it time for you to put your house up for sale?  Make sure you dot all your i's and cross all
your t's if you are at that point.  Most buyers want someone that is serious about selling their
home.  Visit our blog to find out if you are ready to put your home on the market.

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