One of the major benefits of homeownership is that, over time, you get to build equity for the future. Home maintenance is the best way to not just keep the value of your home but also to hopefully enhance it. Although it is somewhat hard to lose value if you stay the course, there are surefire things that you can do or not anticipate that can have you devaluing your investment.
A New Not Aesthetic Roof
A roof is a big investment, and it should add value to your home if you buy a good product. Roofs do have to match the aesthetics of your home, and if they don’t, then they can ruin your curbside appeal. People make up their minds about the value of your home when they drive up. If it is a turn-off right out the gate, then you are going to have a hard time selling, even though you spent a lot replacing your roof.
Carpeting
Carpeting is not cheap, but it can make your home look cheap if you don’t pick the right flooring. Most people would rather have hardwood flooring, but even if you can’t afford hardwood floors or prefer carpeting, the type of carpeting that you put down can hurt the aesthetics and value of your home.
Bad Neighbors
You can’t control who lives next to you, unfortunately. When you move into a home and your neighbors are good, that doesn’t mean that they will stay. Moving next to people who leave trash everywhere, have dogs that run the fence constantly, or are hoarders can tank the value of your home. It isn’t just about your immediate neighbors; neighborhoods can turn quickly without notice, too. Unfortunately, sometimes it is the luck of the draw.
Backyard Pool
Although a pool is nice, not everyone wants one, and not everyone wants to pay to maintain one. When you put a pool into your backyard, then you might be devaluing your home at worst. At best, you are making your home a specialty buy. For everyone who might look for a pool in their shopping filters, there are probably two that are weeding pools out. That is especially true for some areas more than others.
Being in a Foreclosure-Ville
Neighborhoods and subdivisions are usually uniform on purpose. When there is a housing crash or something goes wrong with the builder, you can instantly lose everything that you have invested in a home. Being a part of a foreclosure village means that your neighbors are fighting to get out just like you. That drives competition up and the cost of your home down. There aren’t many things that you can do to avoid foreclosures on a grand scale besides paying attention and getting out as quickly as you can if you see things going south.
Schools
Location, location, location is true in real estate. One surefire way to lose value in your home is buying a home without considering what the school district is like. Even if you don’t have children or aren’t thinking about them just yet, other people who potentially buy your home are. According to recent statistics, when a school district's test scores improve by 5%, the homes that are in that district’s value go up by an average of 2.5%. Be very cognizant of what type of schools you are moving near.
Outdated and Dingy Decor
A house is often not the only thing considered related to the equity in a house. Often, the things inside are a factor, and they either enhance the aesthetics of a home or they can do some real damage. If you are going to sell your home and want to retain the most equity, it is best to either stage it for showings or move your things out and leave it vacant. Don't let your decor distract potential homebuyers.
Noise Pollution
Another thing that can really put a dent in your home equity is noise pollution. If a new factory is built nearby or a commercial airport is approved once you’ve bought your home, you might want to consider getting out before the noise pollution affects the equity you’ve built.
Upgrading it Beyond Return
Homeowners will sometimes not think about the rate of the return on their home investments and will outpace their home by adding upgrades that they will never get money back from. Most of those who put high-priced items into their home wrongly assume that it will increase their value. Although they might slightly, you have to temper what you can and cannot get back from the extras that you build into your home.
Poorly Designed Kitchens
Upgrading a kitchen often comes with anywhere near 70–80% ROI. Sometimes, when people have their kitchens remodeled without much forethought, they can actually sink more into the home than they will get back. A great kitchen is a selling point, not a new one. If you put in expensive cabinets and upgrade appliances but do nothing about a poorly functioning or cramped kitchen, then that will do nothing to build equity. It will just cost you a fortune for nothing.
Wallpaper
Wallpaper used to be something to add that was fairly inexpensive, It isn’t anymore. If you have someone professionally install wallpaper, it can end up destroying the aesthetics of your space. When potential homebuyers see wallpaper they don’t like, the first expense they think of is the cost of removal. If you intend to sell your home in the future, stay away from both tacky wallpaper that looks horrible and expensive wallpaper that doesn’t appeal to anyone but you.
Under-Sold New Construction
When you are buying new construction, it seems like an advantage to be able to choose your home exactly as you want it, and it is. It isn’t nice, however, when none of the homes or lots in your development sell. It is hard to be competitive in a market when you live in an undesirable area. Sitting in a construction zone that has no end and vacant spec homes and lots in abundance will do nothing to spare your downpayment or your equity. Make sure that the construction plan is solid and homes are being sold before you get sold on a new construction home that will drain your finances.
Particular Renovations
Just because you think that a deck taking up the whole yard is a great addition, that doesn’t mean that everyone does. Before you make major renovations that will limit who wants your home and who it will work for, think ahead of time. Taking a three-bedroom home and tearing out walls to make it a two-bedroom with bigger rooms might benefit you, but you will lower the resell value of your home and the equity you have in it.
Overdoing the Landscaping
It is nice to have a fully landscaped and mature yard, but it isn’t nice living in a jungle. Most people enjoy a fully landscaped yard, and it is one expense that potential homeowners are looking for. If it is unruly or filled with shrubs and trees that are overgrown and need to be removed, that will be deducted from the amount they offer you.
Slanted Floors
When potential homebuyers are walking through a home for sale and they notice that something is off, like slanting in the floors, that is usually an immediate red flag. Just the appearance of having foundation issues like cracks in the walls, doors that don’t shut properly, or other issues that look like settling need to be addressed, or no one will want to take a chance that something major is wrong.
Homeownership is the American Dream not only because it is nice to feel like you own something but also because it is an investment into your financial future. If you make smart moves, keep up with maintenance, and don’t make any major changes without considering whether you are valuing or devaluing your home, then you will be able to not just keep but hopefully grow your home investment.
30 Traditional Sayings That Are Now Considered Offensive by Woke Culture
30 Traditional Sayings That Are Now Considered Offensive by Woke Culture
21 Habits Often Associated With Having a Lower Social Status
21 Habits Often Associated With Having a Lower Social Status
25 Social Issues Gen Z are Determined to Cancel
