Location and Land Are Key
Homeowners and real estate investors often look at the outside appearance of a home to be indicative of the property’s worth, notes Investopedia. But, in many cases, the classic saying of “location, location, location” is more important. While the house itself can look really great or run down, the land it sits on will not typically change and will actually gain in value over the years. At the same time, where the land is located will impact the property’s worth. For example, homes that are in culs-de-sac are typically in higher demand and worth more than the house on a busy corner.
The Effect of the Neighborhood Eyesore
While the land a home sits on plays a huge role in determining the value of the property, run down homes in the middle of lovely neighborhoods can reduce the value of every home in the area. Realtors often use the term “bad neighbor” to describe anything from a house with an unkempt yard to a nearby jail or power plant, explains MSN Real Estate. Homes with peeling paint, missing shingles and trash in the yard can reduce the value of nearby homes by as much as 15 percent, and they can be a real turn off for potential buyers in the area.
Not Going Overboard
The value of a home is based on what comparable homes in the neighborhood are going for, states Real Estate. So, in the case of an already updated home, more improvements probably won’t cause an upwards trend in values because it’s already near or at the top. At the same time, notes House Logic, houses that have really nice landscaping can impact the local real estate market and can even increase the value of a house by as much as 28 percent. Even minor changes can boost the home’s worth by 7 or so percent.
Small Improvements Can Make a Difference
Assuming that a home is not at the top of the market in terms of value, there are some relatively inexpensive and fast fixes that can have an impact. Bankrate suggests just a few improvements such as:
- A snazzy new kitchen with new appliances and granite countertops can help to boost the overall value of the home.
- New sources of light and upgraded window treatments also are wise investments.
- Extra storage is always appealing to buyers.
- Luxurious baths also can attract attention.
No matter what you do, make sure your home looks clean and appealing to not only attract buyers for yourself but also your entire neighborhood.
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