Avoid the following detriments to keep the value of your NJ real estate up
Although you may think your home is priceless because of the memories it holds, a prospective buyer may only notice whether or not there are granite countertops, a garage, or an open floor plan when they are making their decision to put an offer on your home. When you are looking to get top dollar for your NJ real estate home, it helps to know what could hurt the value regardless of when and if you want to sell, and though some factors are out of your control, others may not be.
Below are the top threats to the value of your home:
The top 3 most important factors in NJ real estate are location, location, and location. Although you most likely considered location when you bought or built your home, things may have changed since then such as rezoning, worsening of schools, or an increase in crime. Unfortunately, there is not much you can do about the location of your home, but it is important. For example, a home near a freeway or railroad can see a 10% to 15% reduction in value, according to top NJ real estate agents. In cases such as this, highlight and capitalize on your home’s strong features outside as well as inside.
Bad Floor Plan
According to NJ real estate agents, a good floor plan means the difference between a home that will sell quickly and a home that will remain on the market for a long time. Also, appraisers will take odd floor plans into consideration when performing an NJ real estate appraisal. The buyers of today’s market are more critical, and a bad floor plan can reduce an appraised value by as much as 25% compared with similarly sized homes.
An oversupply of homes means that buyers can be picky, and rather than seeing the potential in an outdated kitchen and bathroom, buyers will just move on to another home that does not require as much work and imagination. Many NJ real estate agents say that if your house is not updated, you might as well not sell it.
Most homeowners do not want to live near a lot of rental properties as this can affect a home’s value by as much as 15%, according to NJ real estate agents. The reason for this is that a number of tenants tend to neglect maintaining the properties as well as absent landlords.
Generally, the significant number of foreclosures on the market is bringing down home values, but their long-term effects are still unknown. According to a 2009 Harvard University and Massachusetts Institute of Technology study, a home’s value drops by 1%, on average, if it is within roughly 250 feet of a foreclosed home. A home surrounded by foreclosures will lose value because an appraiser will use those homes as comparables. So ultimately, if you are in an area that is inundated with foreclosed homes and you do not necessarily need to sell, do not.
Lack of a Garage
A garage really adds value to a home, and the key is to have the right size garage for the home and the neighborhood. For example, if you have a $500,000 home with a one-car garage, that would be considered a functional issue.
No Swimming Pool
Depending on your market, a swimming pool or other water feature may boost or lower your home’s value as well as its appeal. If you live in a hot climate where many homes tend to have a pool, it is an expected feature that will add value. However, in areas of the country where pools are not as common, buyers may not want the responsibility of maintaining a pool they did not ever want in a home, and it is those buyers who will most likely not buy your home.
The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.