Your home will probably be your greatest financial investment, and doing what you can to protect that investment it is a constant effort.
Some factors in your control, ranging from the way you keep your lawn to the way you renovate your bathrooms, will affect the value of your home in the long run. However, other factors that impact your home’s market value are out of your control.
The best way to understand what influences your home’s value is to learn what these elements are.
Home Value Factor #1: Location
A good neighborhood means a higher home value, but that’s not the only factor at work here.
According to the home experts at Trulia, two similar homes in the same neighborhood could be valued differently depending on where they’re located. A home that’s nestled in a quiet cul-de-sac will earn a greater return market than a home that sits right in front of a busy road.
Other location deterrents include being adjacent to a vacant lot or too far from certain conveniences like grocery stores and gas stations. Conversely, if your home is situated near popular restaurants, coffee shops or other thriving establishments, you could see a boost in your home’s value.
Home Value Factor #2: Neighbors
Tying into the idea of location are the people located around you — your neighbors. The Balance’s Erin Eberlin writes that a neighborhood marked by unmaintained yards, shoddy homes and vacancies or foreclosures will have a negative effect on the value of your home.
While this factor is difficult to control, there are steps you can take to swing the pendulum if you sense the neighborhood taking a turn for the worse. Specifically, you can politely talk to your neighbors about your concerns or recommend homes for sale in the neighborhood to people who are willing to do some work.
Home Value Factor #3: Weather
For homes in areas prone to natural disasters like earthquakes, tornadoes, floods, mudslides, hurricanes and tsunamis, your property value will take a hit to accommodate the risk, Eberlin writes.
Even if your property survives a natural disaster and you are able to repair the damage through your homeowners insurance, she warns that you might still have trouble when it comes to selling it, since buyers will have apprehensions about moving into an area where disaster has struck in the past.
Fortunately, in western Ohio, there aren’t many types of natural disasters to worry about. But it’s something to keep in mind if you live near a body of water or own a vacation home in another part of the country.
Home Value Factor #4: Renovations
Outdated decor can lower the value of your home — even if you’re into the yellow cabinets and shag carpet of the ‘70s, most people aren’t.
Potential buyers don’t want to walk into a time capsule, and most aren’t interested in taking up extensive home improvement projects like a kitchen or bathroom renovation after moving into a new home.
If you believe you could one day sell your home, it’s important to consider how your renovation plans will hold up in someone else’s eyes. Your home should accommodate your wants and needs, but if you’re considering ripping out the bathtub and putting in a walk-in shower, you may want to get a sense of what’s preferred on the market.
Financing Your Next Home Purchase
When you keep these factors in mind, you’ll be able to better protect your investment for longer. Then, when it comes time to sell your home, you’ll find the payoff well worth the work you put in.
If you’re in the market for a new home, Minster Bank can help. With loan options and a limited-time Welcome Home program for qualified buyers, you’ll get the financing you need at a competitive rate with Minster Bank.