Costly mistakes homeowners make affect the value of a home. There can be mistakes that homeowners make while owning the home and these mistakes will ultimately reflect a loss in value in the home. The following are 8 mistakes that homeowners make that impact of the home!
Having Poor Curb Appeal
The first thing that a home buyer will notice on a home is curb appeal. If the home presents well in the photographs online, it is likely that the home buyer will want to come and physically view the property, and having optimum curb appeal will be inviting to prospective home buyers.
If the home needs to be painted, re-roofed and the garden is overgrown with weeds, the home will appear to be neglected. Any home buyer will make the assumption that if a home needs help from the exterior, then perhaps other systems in the house have been neglected as well. No home buyer wants to purchase a money pit! Before home buyers begin their home search, they have “hopefully” met with a lender and will know what they can afford, and buying a home that needs a lot of work can eat into their budget for repairs that may arise.
Is it a Fixer?
A home seller is going to have to decide that if they are going to sell the home at a discount due to repairs it needs, or repair them and get the home in tip-top condition in order to ask for top dollar.
Ideally, if a home is in great condition with minimal repairs, then it will yield the highest dollar amount.
If there is peeling paint, weeds in the garden, obvious signs that the roof needs repair, the home will be dubbed a “fixer” and that will limit the buyer pool. If a home is a fixer, then the type of buyer that will want to purchase it will either be an investor or a buyer who is handy and is not afraid of either paying to have renovations completed or completing themselves. A buyer who is an end user (meaning they will be fixing and residing in the home) may expect deep discounts for repairs.
Prior to listing the home, it is important to consider the actual physical condition of the home. If a home seller is not savvy or knowledgeable of the systems of the home including electrical, plumbing and HVAC, then a pre-listing home inspection may be warranted. This will uncover obvious defects and items which need to be addressed. A home seller can then decide if investing the money into those repairs will be a good return on investment.
Another very important consideration is if the property is habitable or not. A property needs to be habitable if the buyer is obtaining financing on the home. Meaning there needs to be a working kitchen, operable toilets and more.
Having Deferred Maintenance
If a property has deferred maintenance it will stand out to not only the home buyer but any home inspectors as well. If the property has obvious signs of water leaks which can result in the possibility of mold, which can cause significant health problems. There are some who can walk into a home and instantly begin having allergic reactions of some type due to the spores in the air.
Other deferred maintenance items that will stand out is if the landscaping is not maintained. If a home is overgrown with weeds and is clearly not being maintained, that will send a message to the buyer that there may be other items that have not been maintained in the home.
If there cracks in walls that may be cosmetic but may also have structural indications which can be costly. And if the area is in a liquefaction area, there can also be cracks in the concrete patio and foundation which again may also be structural. A buyer has the right to determine if these structural factors impact the value of the home.
Obvious Signs of Pest/Termite Infestation
Pest and termites can do a number on a home. It can be obvious if a home has termites or other pests. Termites can be very detrimental to a home, and any buyer will not want to purchase a home with termites and other pests. During the due diligence process, if there are termites, the buyer can ask the seller to either fumigate or provide other treatment to eradicate the termites and request a warranty.
Other pests can include rodents, and most buyers are very turned off by this idea. No one wants to have “Ben” the rat and his friends living in the attic. This can be very obvious to a home inspector when the attic is inspected, as rats can eat insulation and cause other damage. Additionally, they are NOT sanitary and the home inspector visually sees it, and it can also smell.
Being Too Trendy with Home Design
Even though a homeowner loves a particular style and it just does not fit in an area, that may turn off potential future buyers. For example, if a home seller designs the home with a southwest flare in an where there the homes are generally cottage style or cape cod, then it may stand out and a turn off other buyers. Some neighborhoods do have architectural committees!
Or if a homeowner designs to paint the exterior trim hot pink (I have literally seen this recently – on an all-black home), it might not appeal to the majority of home buyers. Not to mention, the color black might get kind of warm . . .
Having an accent wall or two inside the home may be acceptable as long as it is not too far out there. If it is just one or two walls, then most buyers may decide that those can easily be painted over without incurring significant expense. However, if the home is too trendy with a specific style or design, then the buyer pool may be less.
Shoddy Workmanship without Permits
A buyer has the right as part of their due diligence period to investigate as to what has been done on the property. This information is generally accessible online and a buyer has the opportunity to view the permit history to understand what has been remodeling or renovations have been done on the property.
There are many homeowners who do work on property themselves, however, if the work requires a permit, then that needs to be disclosed to a prospective home buyer.
Additionally, if the homeowner makes the repairs and they are shoddy, they will stand out. Cutting corners does not always save money and the workmanship generally stands out.
Overbuilding for the Neighborhood and Not Considering the Area
Savvy home buyers do not want to buy the “best” home in the area. That home will have many handicaps including future resale!
If a home is overbuilt for the area, and that seller is now asking way over comparable home sales, they are limiting those who want to purchase the home. That same home buyer can then go and purchase a home in another neighborhood that is in alignment with those comparable home sales.
Not Hiring the Right Realtor
Another consideration when selling a home is hiring the right Realtor. It can be costly to a home seller if the home is not priced properly in order to obtain top value. Hiring a friend or relative is not always the best way to go. Hiring an area expert, and is a full-time Realtor is recommended. A homeowner should ask for testimonials and previous clients to speak to about their experience.
If remodeling, then it is important to consider the important rooms which are the kitchens and bathrooms. Maintaining the home during the home ownership is the ideal way to stay ahead of costly maintenance which can come up when selling a home. Making sure if maintenance items are addressed as they arise will help to maintain the home.
Ensuring the home has fresh paint, and the landscaping is neat and tidy will also provide an overall better impression to a potential buyer arriving at the home.
If I can answer any questions about preparing the home to sell and home selling, please contact me.
Find Other Valuable Resources for “8 Costly Mistakes Homeowners Make Which Affects Value” from Real Estate Professionals Across the Country. Please check out the articles below, and please share across Social Media if you enjoyed the articles.
Costly Mistakes Home Sellers Make via Michelle Gibson, Wellington Home Team
Top 10 Mistakes to Avoid via Kyle Hiscock, Rochester Real Estate
Get Your Home Ready for a Spring Sale via Luke Skar, Madison Mortgage Guys
Home Improvement Mistakes that can Impact Value via Bill Gassett, Maximum Real Estate Exposure
What Home Buyers Wish They Had Known Before Buying A Home via Lynn Pineda, Imagine your House
About the Author
The above real estate article “8 Costly Mistakes Homeowners Make Which Affects Value” was written by Sharon Paxson of Newport Beach Real Estate. With experience since 2005 representing sellers, buyers, and landlords with their real estate transactions, we welcome the opportunity to share our knowledge and expertise and guide you through the home buying or selling process. We specialize in internet marketing to ensure that a listing receives maximum exposure.
We service the following Orange County CA areas: Corona del Mar, Huntington Beach, Laguna Beach, Newport Beach, Newport Coast, Orange, Santa Ana, Sunset Beach, Tustin, and more! If you are considering selling your home, we welcome the opportunity to work with you and list your home with a top Newport Beach CA Realtor.