What Factors May Affect My Home’s Value?
Property appraisal experts often speak of “external obsolescence”, which is the reduction in a property value due to factors beyond the owner’s control. When selling a home, it is important to be mindful of the effects of these outside factors. Things in your area that you might not notice, like unkempt yards, a persistent smell, or proximity to noise (i.e., highway, hospital) can have a tangible and negative impact on the value of your property.
Even the time of year that you sell can affect your appraisal! This article lists some of these outside factors in order for you to be properly informed when you sell your home.
The value of your home is largely determined by its location, and as such, there are multiple aspects of your home’s locale that need to be considered.
It doesn’t matter how nice your house is; if your next-door neighbors live in a dump, your property value is going to go down. If they have loud kids or an annoying dog, though, you shouldn’t worry. There needs to be tangible evidence for an appraiser to lower the value of your home, and kids or dogs don’t fit that bill. Apartment buildings are also something to look out for, as living next to one is not very appealing to many potential buyers.
In addition, any suburban home that winds up next to a commercial building (restaurant, gas station) will be less desirable than one that is not. In suburban neighborhoods, commercial and residential should be kept separate, otherwise, property values will decrease for the latter.
Proximity to Noise
Nobody likes being distracted by noise or woken up in the middle of the night. Because of this, a home that is located near a noisy area is going to have its value lowered. Busy roads are common culprits; if your house is located on a bustling corner, a main street, or near a highway, it will be harder to get a high evaluation. Rail lines also reduce home values greatly.
Although trains run less often than cars, they are much louder, and in some cases, vibrations from the train can be felt in the home. While it might be convenient to be located very close to a hospital, they are usually negative influences on the value of a home since ambulances run all night and their sirens are designed to be attention grabbing.
While high voltage towers are a useful technology, they can be off-putting to buyers when they lie within about 500 feet of a home. Of course, a power tower that’s a half a mile away from your property, even if still visible, will not have much effect on the value of your home. Water towers are also something to watch out for, but they are often much less unsightly than a high voltage tower.
This is something a longtime homeowner would probably no longer notice, but any new arrivals surely will. Whether from a feedlot, landfill, or paper mill, a constant smell in a house’s area is sure to drive the property value down. Though it’s true that people may get used to the smell, it is certain to be a discouraging factor for a potential buyer.
The state of the economy, especially the housing market, is guaranteed to influence the value of your home. Although the economy has been out of recession for a few years, there can still be fluctuations, and there are a few economic conditions that every homeowner should look out for.
- Trust in the market: If people don’t trust the state of the housing market, they are less likely to buy, making it harder for you to sell.
- Unemployment rate: A rising unemployment rate means people will have much less money to buy a home with. Not only that, the mere possibility of losing one’s job can prevent many people from wanting to buy.
Time Of The Year
It might seem strange, but there are actually patterns in each season that can be used to decide when you should sell.
- Spring: This is a great time of year to sell. Thanks to the change into a bright, new season (and tax refunds), people are bound to be more optimistic about investing into the housing market.
- Summer: Depending on your home, summer can be a good time to sell. If you’re selling a vacation property, great! However, standard residential homes may not sell as quickly since many individuals go on vacation during the summer.
- Fall: This can be a great time of year, since people are back in town and the cold usually hasn’t kicked in too much yet.
- Winter: Probably the worst time of year to sell due to cold weather and wear and tear on your home.
Selling Your Arizona Property
Outside factors can affect your home in positive and negative ways, so it’s important to be aware of their potential impact on your home’s value. At Buy My House Now, we have the ability to purchase homes, with cash, in as little as a week!
If someone is looking to avoid all the time and delays associated with putting a house on the market, we can help by buying hassle free!