Three Unexpected Factors Dragging Down the Value of Your Home

3 Unexpected Factors Dragging Down the Value of Your Home (Source: Pixabay.com - Used as royalty free image)

Having an expert, a real estate agent, come in and assess the estimated market value of your property is extremely helpful for homeowners getting ready to put their home on the market for the right asking price.

But often, the expectations homeowners have in their minds don’t exactly line up with the agent's findings in reality. Talk to a home appraiser, and you might get an even more surprising result.  Just as any number of weird and wacky things – like Trader Joe’s locations and gas prices – can contribute to a home’s value going up, so too are there a lot of everyday factors that might be dragging down the value of your home – often without you even knowing it.

If your market analysis or appraisal comes up short, here are three unexpected things that might be to blame…

1.) You’re Too Close to Planes, Trains, and Automobiles

When it comes to the value of your home, many all-important factors actually fall outside of the boundaries of your property, including your house’s proximity to traffic. If your home is near a constantly busy intersection, under the takeoff zone of a major airport, or close enough to hear the Metra or CTA go thundering past every 10 minutes, your home may be a tougher sell, which will cause its sale price to go down.

2.) Your House Doesn't Have as Much to Offer as the Home Down the Block

Another factor outside of your control? Appraisers will look at recent transactions on similar properties in your area to help determine the value of your home – and if the amenities and features you’re offering don’t stack up, your home’s market value could suffer compared to your neighbors'.

Say your neighbors recently sold their home for more than the value of your appraisal, despite having the same design and the same access to a great local school. But maybe your neighbors recently redid their kitchen with brand new appliances, or added an extra bedroom.

Sometimes your home will need a little care before it’s ready to enter the market competitively, whether that means making a few cosmetic upgrades, hiring a stager, or clearing your clutter before letting prospective buyers take a look.

3.) You've Over-Upgraded

While some basic upgrades and improvements may elevate the value of your home, keep in mind that you won’t necessarily make back what you paid for those changes when it comes time to sell. That is to say that if you spend $200,000 on home improvements, don’t expect the market value of your home to suddenly rocket by $200,000 or more.

And keep in mind that renovations or staging done to sell your home will help make it more competitive on the market and sell faster – but that doesn’t necessarily mean you’ll make back every cent you spend during the sale. The value may be go up – and you may save in the long run on expenses like carrying costs – but your appraiser’s estimate may fall short of guaranteeing you a total return on your investment.

Whether you’re looking for a recommendation on an appraiser or you’re ready to take your home to market, we’re here and happy to help! Drop Real Group a line for all of your Chicagoland real estate needs today.

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