Although many things are not within a homeowners control when determining how much is your home worth, others are.
By: Hitesh Khan/
A lot of things factor into how much your home is worth, such as the location, the square footage, the school district and the number of bedrooms and bathrooms. Although several of those parameters aren’t easily changed, some are under a homeowner’s control.
As an astute homeowner, your job is to consider both what you can do to improve your home worth, as well as what you may (inadvertently or otherwise) be doing to decrease it. Completing renovations and repairs might pay off to varying extents.
In other cases, you may just have to put up with some of the things you don’t love about your home, but letting a house slip into disrepair is a surefire way to decrease its value. Whatever path you choose, it’s crucial to be aware of how you’re affecting your home’s bottom line and to understand what can be done to raise it back up.
One of the main things to remember while trying to boost your home worth is that people have a wide variety of tastes. Those tastes may vary greatly both geographically and demographically. A house with the flexibility to suit a big slice of the population pie will be more in demand than one highly customized to any one particular lifestyle. The more people who find a house attractive when it hits the market, the better off you’ll be.
The property market rises and falls, and if you’ve tried to unload a private residential property at a decent price during the real estate chaos that occurs during one of the market lows, you’re probably all too aware of how difficult that can be when the market is flooded. The more comparable homes on the market, the harder it is on your home worth, especially when buyers are scarce.
Many aspects of a neighborhood can detract from how much buyers will be willing to offer. If you live by an airport or MRT tracks, for example, the resulting noise pollution might devalue your home. Light pollution from a nearby expressway or sports stadium could make buyers wary, too.
Having bad neighbours will also affect how much you can command for your properties. When you have bad neighbours, in some cases there won’t be much you can do, but in others you might meet with success. Be sure to document your complaints and deliver them respectfully. It may also be a matter you can bring to the police or to your MP.
If the schools in your area is a well-known one, that could up the value of your home. It’s very common for homebuyers to want to move to places with top-notch schools. People with children will usually be especially cognizant of the quality of the schools in the areas they’re targeting their search. Other buyers, aware of the impact schools can have on property value, may make it a consideration as well.
Needless to say, interior paint plays a big part in home worth, and if your house is in desperate need of a fresh coat, that flaw could be wreaking havoc on your home’s value. Even if you spend time and money repainting your home, a buyer might still be put off by the colour (or colour scheme) you choose. If you’re planning on painting, your best bet is to pick popular home colours in order to appeal to the largest buyer-base possible. Neutral colours are the most widely used; blue and various shades of beige or cream are good bets.
If your home is lacking in storage space, that also may be a point of contention. Warm and inviting – and not overly lived in – are what you’re going for. Most importantly, if you manage to lure potential buyers into your home, they’ll quickly take note of several things. Is the house cluttered with your possessions? Are there pictures of your family adorning every wall? Is the home dusty and dimly lit? These issues are easily remedied, but if you don’t find the time to take care of them, your home will probably have trouble selling for your asking price.
If your house is in need of a serious repair then that will most certainly be a point of contention. You need to get major repairs sorted out or risk shaving off a significant portion of your asking price; otherwise, you’re just asking future homeowners to foot the cost. They won’t and it will affect your home worth.
Do you know enough about how property valuation is done in Singapore?
Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.
Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with iCompareLoan’s loan consultant to help you get the best loan deal at the right price.
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