What can impact the value of your home?
Your home is likely your greatest financial investment, and protecting that investment is an ongoing effort. Smaller and larger factors, ranging from lawn maintenance to bathroom renovations, will affect the value of your home in the long run. Several other elements impacting your home’s market value are out of your control. The best way to understand how value works when it comes to your home is to learn what these factors are.
Location
The home experts at Trulia tell Forbes that two similar homes in the same neighborhood could be valued differently depending on their location. A home in a quiet cul-de-sac will typically earn a higher return than one near a busy road or highway. Other location-related drawbacks include being next to a vacant lot or being too far from conveniences like grocery stores and gas stations. On the flip side, homes near popular restaurants, coffee shops, and other thriving establishments often see an increase in value.
Neighbors
Tying into location are the people around you – your neighbors. The Balance’s Erin Eberlin writes that a neighborhood with unkempt yards, rundown homes, or vacant/foreclosed properties can negatively impact your home’s value. While you can't control your neighbors, there are things you can do to improve the situation. For example, consider talking to your neighbors about your concerns and recommending the area to prospective buyers who are eager to help turn things around.
Weather
If you live in an area prone to natural disasters such as earthquakes, tornadoes, floods, mudslides, hurricanes, or tsunamis, Eberlin writes that your property value may be impacted due to the risk. Even if your property survives a natural disaster and you’re able to repair the damage through homeowner’s insurance, buyers may hesitate when moving to an area where disaster has occurred in the past.
Renovations
Outdated decor can lower the value of your home – no matter how much you may love it. Buyers typically aren’t interested in walking into a time capsule and may not want to take on major renovation projects like updating kitchens or bathrooms right away. If you’re considering renovations, think about how they’ll be perceived by future buyers. While your personal preferences are important, it's also worth considering what’s popular in the market. For example, replacing a bathtub with a walk-in shower may be trendy, but it’s essential to know what’s preferred by buyers.
By keeping these factors in mind, you’ll be able to protect your investment for the long term. When it’s time to sell, you’ll find the payoff is worth the effort.
Financing Your Home Upgrades
Five Star Bank provides financing options that can help you renovate space home. A Home Equity Loan or Line of Credit can help you borrow against the current equity in your home. Learn more and connect with a Five Star Bank representative today.
FINANCING OPTIONS (Opens in a new Window)
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