What Hurts the Resale Value of a Home?
Published by
Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area!
Selling a home can be a wonderful and rewarding experience. However, it can also prove to be challenging and difficult. Before selling a home, it’s essential to grasp the work required and the overall inconvenience that a home sale brings. If you wake up tomorrow and put your home on the market, it will hurt the resale value of the home. While there are some factors in the home sale that you cannot control, others you can control. Let’s take a look at what can hurt the resale value of your home so that you know what to avoid and what you can change.
Factors the seller CAN control
Many factors contributing to the resale value of a home are directly controlled by the seller.
These would be things such as landscaping (curb appeal), cleanliness, organization, odor, staging, and the presence of pets.
Having the home in great condition with no visible deferred maintenance items will cause the home to show well. Furthermore, it is critical that the home is clean, tidy, and uncluttered. Remember to remove personal photos and memorabilia. The buyer must be able to envision themselves in the home and personal items can make that difficult.
After you’ve removed items, do a deep clean of the home. If necessary, shampoo carpets and fabrics, like carpets and curtains, to remove lingering smells.
Lastly, stage the home so that it feels open and inviting.
These steps cost little to no money, only some time and elbow grease, yet they may be the most essential items that contribute to the resale value of your home.
Factors the seller CANNOT control
Market Forces
The number one item a seller cannot control when attempting to sell a home is the market itself.
Buyers and sellers do not directly control the market environment. While they play a part, there are other elements in the housing market that contribute to home values.
Generally speaking, external market forces like interest rates, supply and demand, overall economy, and politics control the market environment.
Beyond those external market forces, buyers have the most control of the market. They determine resale value based on the price and terms they are willing to contribute to closing the sale.
If you have ever heard the term “market value” or “current market value,” this is simply defined as “the price a buyer is willing to pay and a seller is willing to accept.”
>>DISCOVER: 6 Value Boosting Home Improvements
Location
While there are many other items you do not have control over, location is paramount.
You may have heard the saying “location, location, location.” This saying relates directly to a property’s resale value.
Perhaps the home is on a busy street or backs to a busy street. If neighboring homes have poor curb appeal, these factors can bring down the resale value of all surrounding homes.
Moreover, it has always held true that property in prime locations has higher resale values. This consideration needs to be made when purchasing a property to impact resale values. Property in subpar locations will negatively impact the resale value of a home.
There is only one first impression
This first impression is created the moment the potential buyer pulls up in front of the property. It is reinforced the second they walk in the front door.
Clean and thoughtful curb appeal is critical in creating a positive first impression. A buyer may even rule out your home from their interest list before they walk through the front door if the outside of the home is in poor condition.
The overall age and condition of the home will impact the resale value. However, age can be less of a factor compared to a “well maintained” or “updated” home.
Think in terms of what is common or normal for the area and what comparable homes offer. In order to attain a higher resale value position, your property needs to stand out based on condition, location, view, amenities, and other items that are important to buyers. Improve the areas that you have control over to increase the resale value of your home.
No two homes are exactly alike
It is important to keep in mind that no two homes are exactly alike, and the value will differ for certain reasons.
Just as they say that beauty lies in the eye of the beholder, resale price lies in the value the buyer places on the total package you are selling.
Make your home the best it can possibly be with the capital resources you have on hand.
Note that larger homes tend to have higher resale values; however, this is not always the case. Consider how the home compares to the “norm” for the neighborhood. A home that is much smaller or much larger than the average size home nearby will be impacted as it relates to resale value.
Factors such as a garage or basement can add significant value to a property as well. These can also be deal-breaking factors for a buyer. It’s essential to understand the resale of your property will be based on the total package, not any single factor or item.
🏠 See Why Clients Love FastExpert Agents
Final thoughts
If your goal is to attain the highest possible resale value for your property, pay attention to the items discussed in this article. As a realtor with decades of experience, my advice is to understand these items prior to purchasing a property if at all possible.
The best way to calculate future resale value is to understand what you are buying at the time of purchase. There are no guarantees in life; however, calculated risk is an important factor in building generational wealth. This can be attained by creating high-resale value opportunities within the real estate space.
Have a question about real estate or resale value? Reach out to Mike Jeppson directly!
