As a homeowner, you likely consider your property an investment. However, many unknowingly engage in behaviors that can significantly decrease their home’s value over time.
I researched the top seven ways homeowners inadvertently destroy their properties’ value, according to real estate experts. Let’s identify the top seven things not to do and instead protect and potentially enhance a home’s value. Understanding and avoiding these common pitfalls can help.
1. Neglecting Essential Maintenance and Repairs
One of the fastest ways to erode your home’s value is through deferred maintenance. This term refers to postponing necessary repairs and upkeep, often due to budget constraints or simple procrastination. What might seem like minor issues today can escalate into major, costly problems.
Homeowners often overlook everyday maintenance issues, including small leaks, damaged gutters, and neglected HVAC systems. For instance, a small, unaddressed roof leak can lead to extensive water damage, mold growth, and even structural issues.
Similarly, clogged gutters might seem harmless, but they can cause water to back up and damage your home’s foundation or exterior walls.
According to a study by the National Association of Realtors, neglecting home maintenance can reduce a property’s value by 10% on average. To avoid this, create an essential maintenance checklist and regularly inspect your home’s critical systems.
Address issues promptly, and don’t hesitate to call in professionals for complex problems. Preventive maintenance is almost always less expensive than major repairs.
2. Letting Curb Appeal Slide
First impressions matter, especially in real estate. Curb appeal refers to the attractiveness of your property when viewed from the street, and it plays a crucial role in determining your home’s perceived value.
Poor exterior paint quality, overgrown landscaping, and general neglect can significantly impact a potential buyer’s perception before stepping inside.
According to real estate experts, a fresh coat of paint can increase a home’s value by up to 5%. Conversely, faded, peeling, or cracked paint sends a message of neglect and can make buyers wonder what other maintenance issues might be lurking.
Similarly, an unkempt lawn, overgrown bushes, or clutter in the yard can make your property appear less valuable and well-maintained.
To boost your home’s curb appeal, start with the basics: keep your lawn mowed, trim bushes and trees regularly, and remove any clutter from your yard. Consider adding some colorful plants or flowers for a pop of visual interest.
If your home’s exterior paint looks worse, a fresh coat can dramatically improve its appearance and perceived value.
3. Botching DIY Projects and Renovations
While the DIY approach can save money upfront, poorly executed home improvement projects can decrease your property’s value. Shoddy workmanship, uneven surfaces, or renovations that don’t comply with local building codes are red flags for potential buyers and may require costly fixes.
Improper electrical work, poorly installed flooring, and amateur plumbing repairs are common DIY mistakes that can hurt your home’s value. These not only look unprofessional but can also pose safety risks. Moreover, work done without proper permits can lead to legal issues and make it difficult to sell your home.
Before embarking on a DIY project, honestly assess your skills and the complexity of the task. For significant renovations or anything involving electrical, plumbing, or structural changes, it’s often best to hire a licensed professional.
If you decide to DIY, thoroughly research the proper techniques, obtain necessary permits, and don’t hesitate to call in an expert if you encounter difficulties. Doing it right the first time is almost always less expensive than fixing mistakes later.
4. Outdated Kitchens and Bathrooms
Regarding valuation, kitchens and bathrooms are often considered the most essential rooms in a home. Outdated fixtures, appliances, and designs in these spaces can make your entire property feel less appealing to potential buyers and decrease its overall worth.
In kitchens, old appliances, worn countertops, and dated cabinetry are common culprits. For bathrooms, tired fixtures, old-fashioned tiles, and poor lighting can make the space feel neglected.
According to Zondahome’s 2024 Cost vs. Value report, even minor kitchen remodels can recoup about 96% of their cost at resale, while bathroom remodels can recoup up to 74%.
If a complete remodel isn’t in your budget, consider more minor updates that can significantly impact you. Painting cabinets, updating hardware, and installing a new backsplash in the kitchen can refresh the space without breaking the bank.
Replacing the vanity, updating fixtures, and adding fresh caulk can go a long way in bathrooms. Keep an eye on current design trends, but aim for timeless choices that appeal to a broad range of tastes.
5. Over-Personalizing with Unconventional Design Choices
While your home should reflect your personality, excessive customization or unconventional design choices can limit your property’s appeal to potential buyers. What you consider a unique feature might be viewed as a liability by someone else.
Examples of over-personalization include bright or unusual paint colors, particular themed rooms, or niche renovations like converting a bedroom into a home theater. These choices can make it difficult for potential buyers to envision themselves living in the space and may require additional work to reverse, potentially lowering the home’s value.
To balance personal style and resale value, choose neutral paint colors in main living areas and save bold choices for easily changeable elements like artwork or accessories. Consider how they might appeal to various tastes when making permanent changes.
If you plan to sell soon, consider depersonalizing your space by removing family photos and highly personal items to create a more neutral canvas for potential buyers.
6. Converting Garages into Living Spaces
While it might seem like an intelligent way to add square footage, converting a garage into a living space can decrease your home’s value. Most buyers prefer a functional garage for parking and storage; eliminating this feature can make your property less desirable.
According to real estate experts, homes with garages typically sell for $20,000 to $30,000 more than comparable homes without. A converted garage might be seen as a drawback rather than a bonus, especially in areas where parking is at a premium or in climates where protecting vehicles from the elements is essential.
If you need additional living space, consider other options like finishing a basement, adding a sunroom, or building an addition if your lot and local zoning laws allow. These alternatives can provide the extra space you need without sacrificing the valuable asset of a garage.
If you’ve already converted your garage, consider making the space flexible so it can easily be converted back if needed.
7. Ignoring the Impact of External Factors
While homeowners can’t control everything affecting their property’s value, failing to consider and address external factors can be costly. Neighborhood conditions, nearby facilities, and potential nuisances like traffic noise can all impact your home’s worth.
For instance, a new development in your area could affect property values positively or negatively. Similarly, changes in local school ratings, crime rates, or the closure of nearby amenities can influence your home’s desirability. Factors like a neighbor’s unkempt property can have ripple effects on surrounding home values.
Attend town meetings, follow local news, and join neighborhood associations to stay informed about local developments and community changes. If you notice issues that could negatively impact your property value, such as increasing traffic noise, consider taking proactive steps like installing soundproofing or planting trees as a natural barrier.
When choosing a property, thoroughly research the area and consider potential developments that could affect its value.
Conclusion
Maintaining and increasing your home’s value requires ongoing attention and intelligent decision-making. By avoiding these common pitfalls and taking a proactive approach to home ownership, you can protect your investment and potentially enhance its worth over time.
Your home is not just a place to live—it’s also one of your most valuable assets and deserves to be treated as such.