Most of you know that location increases the value of your DC, Maryland or Virginia home. It’s worth a great deal when the home is in a nice neighborhood or on a quiet street or has a good school district nearby - or how about all three!
But a recent article from the MSN Money site reminds us that we also need to know the things that can decrease our home’s value. These are factors that many of us might well miss until their absence hits us in the wallet when it’s time to sell.
If your home is very different on the outside from others on the street or in the neighborhood, a low appraisal value is lurking. Examples include:
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Your home is a colonial while the neighbors' homes are contemporary.
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The total square footage is more than adjacent homes--whether it was built that way or you added an addition.
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Your exterior decorating style is far off the beaten path. (Think purple paint.)
On the inside, count bedrooms. Having fewer of these than your DC neighbors could decrease value. The same is true if everyone has a large family room and you don’t. There should be a consistent style throughout the home rather than lots of different influences. And if you start a remodeling project, finish it. Unfinished remodels are an extremely effective way to get a lower appraisal.
This doesn’t mean you can’t renovate! Remember though -- most improvements don’t return what you invest. Do just enough to be able to say “new” or “updated” kitchen, bath, etc. A well-done kitchen remodel can sometimes increase appraised value up to 10 percent.
Along with maintenance and style, the age of your home also determines the appraiser’s number. Obviously younger homes are valued higher, but I have also seen very well-maintained older homes hang with the "youngins".
Some appraisal factors you just won’t be able to control, and they can be detrimental. One is sloppy neighbors, which can lower your appraisal by 5 to 10 percent. Registered sex offenders living within a block or closer can decrease a home’s value by 9 percent. Even inanimate neighbors can reduce value. If you’re within two miles of a power plant, expect to be valued at 4 to 7 percent less than similar homes farther away. Landfills drop value by 6 to 10 percent. Other value-busters include a cemetery or even a school.
If you’re part of a homeowners association (HOA), it needs to have the right balance between rule enforcement and over-the-top restrictions to have a positive effect on your appraisal.
Finally, check your original tax assessment. If this was not done properly, you could find that your home is not the same size as when you bought it. Often it ends up being smaller but sometimes it’s larger, so it’s worth checking out.
While all of these factors can affect a home’s appraisal, it doesn’t mean they will, and most neighborhoods have very few of these issues. Knowing all the possibilities simply gives you the option to fix what you can for more value and to set realistic expectations when it comes time to sell.
