We know there are many reasons to enhance the curb appeal of your house and increase its resale value. Many homeowners, although, are not aware of the reasons which may reduce the house’s worth. Selling your house needs a lot of attention either with the upkeep or the functional aspects of the structure. A buyer on the other hand will check the aesthetical appearance as well as the condition of the house.
Factors like bad location, old construction, and crime rates can potentially lower the value of a house. It is a well-known fact that a good house will never sit in the inventory for a long time. If you are a seller and want to sell properties online, you must check the ‘5 Reasons That May Reduce The Value Of A House.’
Following are the points which may reduce your home’s worth –
1. A Shabby Exterior Facade
If you want to sell a home fast for cash, a good-looking exterior is a must. Potential buyers pay attention to the exterior surfaces as nobody wants the extra maintenance cost while buying a house. As wisely put,
‘The first impression is the last impression it applies in home sales as well.”
According to a survey, potential home buyers only take 10 seconds to like a property, just by looking at its exteriors. Conclusively, it is always good to maintain the home’s exterior beauty to sustain its value in the market. Adding a fresh coat of paint, mowing, and cleaning the lawn may make a huge visible difference.
2. Inefficient Energy Ratings
Since 2018 energy performance certificates were introduced in the market to comprehend the energy efficiency of a house. Energy efficiency is correspondent to the pricing of a home, the higher the ratings higher the property prices will be. It is illegal to sell or put your house on rent if your energy-efficiency rating is below ‘E’ on the unit. Many buyers end up purchasing the property and paying huge electricity bills reason being the poor energy ratings. A good energy rating can shoot your home’s worth by approximately 14%, which is a great profit margin for home sellers.
3. Poor Locality
A locality is a compilation of good schools, hospitals, and departmental stores, no crime rates, and easy access to multiple places. To sell your house fast for cash in NY it becomes essential to have basic amenities accessible. A study shows how proximity to certain places can decrease your home’s worth by a specific amount of percentage (sources).
- Bad school – 22%
- Strip clubs – 14.7%
- Homeless shelters 12.7%
- Cemetery – 12.3%
- Funeral homes – 6.5%
- Power plants – 5.3%
- Shooting ranges – 3.7%
If your home is around these places you’ll have to work more on the aesthetics so that no one walks past your house. Additionally, foreclosures in the neighborhood make a bad impact on the home sale. While selling your house, appraisers look at the comparable selling price in the neighborhood. The equivalent price played an important role in estimating your property’s worth and foreclosed houses may turn down the appeal.
4. The Escalating Mortgage Rates
The formula of home selling predominantly depends on the mortgage rate in the market. A high mortgage rate means fewer buyers whereas; a low mortgage rate means more buyers. Potential buyers usually start their hunt when mortgage rates are low as the monthly repayment fits into their budget.
Home affordability decreases for buyers when the rates are high as they pay extra over the life of a loan. As a seller, increased mortgage rates don’t help you to sell your house fast. Your home isn’t valuable for buyers because they pay extra on the home as well as the mortgage repayment.
5. Additional Points To Consider
We’ve spoken about a house’s aesthetics or curb appeal, which plays a huge role in home selling. There are certain things that lower your house’s worth like installing a pool, doing excessive DIYs, cluttered rooms, poor HVAC systems, etc.
There are specific things to keep in mind before listing your home on the market –
- Take care of the plumbing and upkeep
- Remove the shabby wallpapers
- De-clutter your house; get rid of the extra things in your home
- Keep the decor to a minimum
- Remove the carpets which cover the whole floor
- Mow and clean the lawn, whether it’s a front or a backyard
- Get rid of invasive plant species or climbers
- Keep your pets at pay (while walkthroughs)
We comprehend a house is not just a structure it also has many memories attached to it. Suicides or violent deaths in a home can be a big reason for people to back out from buying it. It is advised to disclose little details to build transparency with potential buyers to avoid hassles later.
The Takeaway on the Value of a House
Selling a house is a daunting task and there are multiple things that may add to and reduce the value of your house. If you want to sell remodeled houses or you want to sell your house as-is, get in touch with Elite Properties. We buy houses for cash which allows you to employ the yields of the sale as per your preferences. Additionally, we buy houses in any condition that eludes the hassles of maintenance and legal processes.
If you have other queries related to the topic or you want to know more about the home selling process call us today at 718-977-5462.
We know businesses around the world faced a hard hit due to the COVID-19 pandemic. The real estate market was great to hit & not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With homestay orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices Trend’.
Situations Post Covid-19 Pandemic
As stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen. According to recent claims, the unemployment rate is approximately 30 million. This becomes the justified reason for the steep economy of the states and affected Real estate Prices Trend.
Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain was 6.5% in January and February 2020 combined. A joint report on new home sales from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) stated; that there was a mere drop in home sales by 4.4% since January 2020 (as per the current post-Covid-19 scenario). The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.
Housing Inventory Situation
The housing inventory has been quite low. As of February 2020, it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify the virtual tour requests in April made up one-third of the total requests as compared to the month of March.
A Complete Home Sales Analysis
As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process. The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties posts 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources). The percentage stands to be amongst the biggest declinations of this year. If the situation is prolonged, the bar may see a fall in inventory in the coming times.
There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020. Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact on the housing market.
What To Expect From Home Selling Or Buying?
Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt with respect to real estate.
- If you are looking to sell your house try pushing to the late summer or fall. As per buyers, home prices usually drop in colder months, making it the best time to buy a house.
- The closing process might witness a slowdown. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
- Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly installments.
Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties which will help in easy home selling. Also, we buy houses in an as-is condition which avoids the hassles of upkeep and repair without taking into consideration of Real estate Prices Trend. In such tight circumstances the most feasible option is to sell the home for cash with a cash buying company, call us today at 7189775462.