What Reduces A Property’s Value?

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Many people, especially those hoping to sell their property, ask a common question ‘what factors determine a property’s value?’ Some known factors such as location, land, and nature of the property market at the moment affect a property’s value. Still, other more minor elements may increase or reduce the value of your property. 

Although these elements are minute, they can add or remove a few hundred or thousands from your property’s value. 

What factors affect a property’s value? 

Several factors like location in a bushfire zone and poor renovations can devalue a property. Regardless of the type of property you want to sell, you aim to maximise its value and get a reasonable price for the property. 

Although there are several things homeowners can do to increase the value of their property when they want to sell, some external elements may still reduce the property value. 

Five things that reduce a property’s value and how to fix them. 

The following are factors that can negatively impact a property’s value and what you can do to avoid them. 

Storage space 

Storage space or garages can add about $8000 per square meter to the value of a property. This is more common in apartments because storage options and area is limited. By creating external storage space on the property, this gives potential buyers sufficient space to store their belongings. 

Cheap renovations 

Quality renovations add value to a property, but a poorly done renovation will have the opposite effect. Ensure the local council approves the plan for any renovation before you carry out a significant renovation. This will help prevent illegalities during a building inspection that may delay the sale of the property and reduce its value. 

Poor workmanship on the home also discourages potential buyers, ensuring you get qualified persons to carry out any work on your house to fix damages before putting your home for sale is non-negotiable. 

Energy efficiency 

More people are beginning to realise the benefits of investing in an efficient energy system in their homes. An efficient energy system may not only reduce your energy bill but reduces the amount of emitted carbon. 

Installing features such as double glazed windows, solar panels, insulating systems, and other energy-saving appliances can boost your property’s value, especially if the house is in an area that needs heating or cooling throughout the year. 

The general state of disrepair 

This is one of the apparent reasons that reduces the value of a house. Some homeowners do not realise the importance of keeping a property they intend to sell, clean. 

A listed house with broken doors, dirt and debris on the walls, broken or cracked windows, overgrown gardens and lawns are not attractive to buyers and would likely be on sale for a long time. Asides from being unattractive, potential buyers would have to factor in the cost of repairs while bidding for the house. It means they will offer you less for the house. 

Carrying out maintenance work on the property, repainting it, replacing old light fittings and fixtures would make the property more appealing and increase its value. 

Bad Kerb appeal 

Your home’s first impression for buyers is important because it affects how much they will want to pay for the house. Ensure you fix any damage and declutter the house before putting it up for sale. 

Note that certain factors that may add a kerb appeal to you may not have the same effect on your potential buyers. For example, you may love garden gnomes and have them in your garden, but a buyer may not find this appealing, so ensure you consider these factors while preparing to sell the house. 

Above all else, ensure your home is in good condition before putting it up for sale. You can get a new letterbox, keep the garden well-manicured, paint the fence and house if you want to sell your home at a fair price. 

In Conclusion 

Although you do not control some factors that affect your property’s value, you can try to make the house more presentable and more appealing to potential buyers, so they offer a reasonable price for your home. 

If you have a residential property for sale, contact AM Rutty today or visit us to have our real estate agents help you sell the house quickly and at a good price. 

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