What Can Increase Property Value
A home is a significant investment, and your goal might be to hope it increases in value over time, keeping it in good condition might help. What factors might potentially increase property value, and how to keep your house in good shape.
What is Property Value?
Property value refers to the worth of a property, whether it is a piece of land or a building. The worth of a property is determined by various factors, such as its location, size, age, and condition. When it comes to a home, the appraised amount can significantly impact the homeowner's equity, which is the difference between the property's value and the amount owed on the mortgage. Therefore, keeping your property in good condition is essential to increase its worth.
What Can Increase Property Value?
There are various things that can increase your property's worth, and no one can ever really predict what your value might be in the future. However, there are two things that you might be able to help control a bit, they fall under two main categories: building worth and land value. Building value refers to the structure itself, while land value is the land on which the property sits.
Building Value
Renovations are one of the most effective ways you can increase the worth of a property, however this does not mean you will always come out ahead of what you invested as some investments might actually produce lower results than you expected. Updating key areas of a home, such as a bathroom or a kitchen, makes the property more attractive to potential buyers. Finishing the basement or adding a bedroom or bathroom can also increase the living space and functionality of the home. However, it is important to ensure that the renovations are done correctly and in a way that complements the overall style of the property.
Land Value
Improving the landscaping can also significantly increase the value of a property. A well-maintained lawn, attractive trees and shrubs, and colorful flowers can all make a property more appealing. Adding outdoor amenities, such as a deck or patio, can also increase the worth of a property by creating additional living space. In addition, a desirable location, such as near good schools or a popular shopping district, can significantly increase property worth.
Keeping Your House in Good Condition
One of the most critical factors in increasing your property's worth is keeping it in good condition. A well-maintained home can significantly increase its value, as potential buyers are more likely to pay top dollar for a home that has been well-cared for.
Regular Maintenance
Performing regular maintenance on a property is essential for maintaining its worth. Painting the exterior and interior of the home can make it look fresh and well-maintained. Repairing leaks or damage, such as water damage or broken windows, can prevent larger, more expensive problems from developing. Ensuring the HVAC system and other appliances function correctly can prevent costly repairs.
Professional Inspections
Regular inspections by professionals, such as welders, electricians, and plumbers, can identify any issues that may impact the value of a property. For example, a welder can identify structural issues affecting the home's safety, while an electrician can ensure the wiring is up to code. Addressing these issues promptly can prevent them from becoming larger and more expensive problems.
What Can Decrease Property Value?
While there are many ways to increase your property's worth, many factors can also decrease its value. These factors include a need for more maintenance, outdated features, and poor-quality renovations. Other factors that can decrease property worth include a nearby busy highway or airport.
Lack of Maintenance
A lack of maintenance can significantly decrease the worth of a property. Poor upkeep of the property, such as peeling paint or overgrown landscaping, can make it less appealing to potential buyers. In addition, ignoring regular maintenance tasks, such as replacing a leaky roof or repairing a broken window, can lead to larger, more expensive problems down the road.
Outdated Features
Outdated features like old appliances or fixtures can make a property less appealing to potential buyers. A property with outdated features may also require more extensive renovations to update, which can be costly and time-consuming.
Poor-quality Renovations
Poor-quality renovations, lack of permits, such as unprofessional artistry or using low-quality materials, can decrease the value of a property. Poorly executed renovations may turn buyers off and require additional work to fix the problems, which can be costly.
Undesirable Location
The location of a property can have a significant impact on its value. Due to noise pollution, a property near a busy highway or airport may be less appealing to potential buyers.
Increasing your property's value is essential if you want to maximize your investment as a homeowner. Building and land value can be improved through various renovations and improvements, while regular maintenance is critical in keeping your home in good condition. On the other hand, many factors can decrease your property's value, such as a lack of maintenance or an undesirable location. By being aware of these factors and increasing your property's value, you can ensure you get the most out of your investment as a homeowner.
In conclusion, not all of these factors apply in all circumstances, as properties are valued at an individual level and are more of a localized valuation, such as your community. Consult your local real estate agent and always make sure to get an appraisal so you can understand the value of what your home brings, in addition you may also want to opt for a second appraisal if for any reason you feel something is off. The moral of the article is to make sure to keep your home up to date and renovating up to current market trends may help your goals.