Advice
These bad things will devalue your home's value
30/11/2018 11:21 | Source: Vnexpress
For many people, home is the biggest investment. However, not many of them know about value of a home and things that can ruin it such as bad decorations, noisy neighbors or an unfortunately-placed sinkhole.

These are some of the biggest threats to your home value:

1. Sinkhole damage 

Geology of your area is problematic, drainage system does not works well…Your home suddenly falls in the floodplain when there is a heavy rain. This problem forces a lot of people to cut 30% off their asking price, along with the cost of any repairs after damages arise. 

2. Dumps and power plants

Your home value can be dragged by about 7% if it is in close proximity to a dump or a power plant. A research on landfills on residential property in Cleveland, Ohio found the stench from city dump was enough to cut down property values by 5.5 - 7.3%. Similarly, homes within 3-4km of a power plant recorded values decline by 4 - 7%.

These bad things will devalue your home easily

3. Billboards

A recent study found tacky billboards are an eyesore and can potentially downgrade value of a home. Prices of homes within 150 meters of a billboard are lower than prices of others farther away. 

4. Noisy neighbors

Noise can be a property value killer. Noise from neighbors as well as their pets is enough to drag your home values down by 5 to 10%. This is the reason why prospective homebuyers are advised to visit homes at all times of day and more than a few times. As a home owner, you should be aware of what is going on in your neighborhood and how others’ bad behaviors could affect value of your home.

5. Bad school

Lots of homebuyers often give their top priority for school quality. It means neighborhoods almost always benefit from being in close proximity to reputable schools. In contrast, neighborhoods near closed-down or low-ranking schools are less attractive and tend to see their property values cut.

6. Foreclosed homes

Across the US, foreclosures were found to cause an average $7,200 price decline for every nearby home. Another study in the US found each foreclosure within 100 meters of a single-family home drops that home's value by 1.3%.

7. Some improvements

Location has a great role in determining home value. Homes with the same size, in the same neighborhood often have the same price, regardless any additional swimming pool, outdoor kitchen or small garden.

Spending VND200 million on ancillary services does not mean that you will sell your home at VND200 million higher price. It may be even less attractive to potential buyers. For example, a small garden decoration may not increase your home’s value because buyers do not want to spend more money and time in it.

8. Irregular colors

Buyers often pay attention to color of a home first. If the color is too prominent in the neighborhood, home price may dip. Interior color is the same. For example, pink living rooms may not attract homebuyers because they think it's hard to decorate.

9. Noise pollution

Prices of homes in close proximity to highways, railways, airports can be reduced by constant traffic noise which discomfort buyers.