If you’re considering selling your home (or buying a home for that matter), you should know the different factors impact its value. For sellers, there are some things you can do and other places where you just must accept reality. When it comes to residential real estate, there are a few universal truths. But also, your local market will ultimately determine what is and what isn’t true.
3 Top Things that Devalue a House
The fact of the matter is, there are some factors which help to drive the price of a home up. And, there are things which actually devalue a house. For instance, some home improvements cause a home to drop in value. Although that sounds strange, it’s quite true. Let’s start with two big ones: kitchen and bath renovations. Now, when is this the case? Basically when you over customize any room, you drive down its resale value.
“For most people, a home is the largest purchase they’ll ever make, so choosing the wrong property can have disastrous implications for their wallets and well-being. Still, many homeowners feel a strong sense of pride in putting their mark on the property, building equity and having a place to truly call their own.” —U.S. News and World Report
Another thing which causes a home to lose some of its attractiveness is water features, like a pool or hot tub. Of course, here in Florida, be it right here in Orlando or anywhere in the Sunshine State, pools are ubiquitous. While a pool tends to increase the value of a house, the fact there are so many houses with pools, can cause it to actually be a negative to some buyers. They just don’t like the risk and/or the added expense. Landscaping is another thing which can devalue a home, particularly if it’s intricate (also because it’s an extra expense).
Top 5 Home Value Enhancement Factors
Of course, there are factors which enhance a home’s overall value. As mentioned above, there are some things you can change and some things which are simply out of your control. (These are mostly things you can’t change.) But, they nevertheless cause a home to increase in value:
- Location. You’ve heard the old cliche, that real estate is all about location, location, location. Well, these numbers prove that to be true. Houses located in urban areas near mass transportation grow about 8.4 percent in value per year. Houses located near good schools increase by 7.2 percent and nearby shopping 6.5 percent.
- Modern style. Newer homes outperform older houses (not surprisingly). A contemporary home will go up in value by 7.7 percent each year, with traditionals growing by 5.5 percent. Ranch homes grow b 4.5 percent, with Craftsman increasing by 3.7 percent and Victorian 2.2 percent.
- Open floor plan. Houses with an open floor plan perform quite well when it comes to appreciation. A home with an open floor plan rises by 7.4 percent per year.
- The right amenities. Some amenities and fixtures also contribute to appreciation. For instance, a house with a patio increases by 6.8 percent, hardwood floors bring 5.7 percent, and fireplaces increase by 5.3 percent. Also, a house with granite countertops enjoy an annual appreciation of 2.5 percent. While stainless steel appliances boost value by 3 percent per year.
- Homes with good views. If your home has a great view, that too, will help it to appreciate stronger. For example, if it overlooks or is nearby a park, that’s a 7.9 percent increase annually. Lake view homes increase by 4.9 percent per year.
If you are considering buying or selling a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice about the local real estate market so you make the best decisions.