Valuation Management Group as part of our appraisal management services strives to write on subjects of interest to our clients, their borrowers and appraisers.
Usually the discussions are about what can be done to increase a home’s value, but there are many items that can decrease a home’s value. Our list is not all inclusive of problem areas but a few things to consider.
- An aging roof can set a negative impression from the street. Often referred to as curb appeal. A potential buyer sees big dollar signs in the near future when they see a deteriorating roof. If the roof starts leaking, it can cause structural damage.
- A swimming pool may lower the value of a home. VMG recently did a blog on swimming pools. Click here to view this blog.
- Certain home improvements can decrease a home’s value. For instance, all the homes in a neighborhood have a 2 car garage and an owner decides to turn the garage of their property into a family room. It may actually have a negative impact on the marketability and value of the home. Renovations that are completed with a quality less than the rest of the home may also negatively impact the value. An example would be an owner decides to finish the basement and do most of the work themselves. Unless the owner is a trained craftsman the renovation may be inferior and have a negative impact.
- Neglecting air conditioning and heating units can cause the value of a home to be less. It is important to trim shrubs around air conditioning units so the unit is free from obstruction. Units should be serviced regularly to ensure maximum efficiency. A potential buyer considers the age and condition of the HVAC systems in their purchase decision.
- Landscaping that is overgrown or nonexistent impacts the curb appeal of a property. It is important not to allow shrubs to grow too tall or allow them to encroach on the house.
- The front door and porch are the first thing most people see to judge a property. It is key to keep the front entrance well maintained. Updating front porch light fixtures and fresh painting are economical ways to give the entrance a face lift.
- Any deferred maintenance can negatively impact a home’s value and possibly cause additional disrepair. An example is an aging hot water heater. Water has minerals in it which can build up in the bottom of the hot water heater causing it to work harder and possibly begin leaking and lead to significant water damage.
Valuation Management Group is a national, residential and commercial appraisal management services company that manages the appraisal process, including the appraisal review, for financial institutions, banks, mortgage bankers, and credit unions. VMG offers a full array of commercial and residential appraisal products and services. The company’s goal is to take the appraisal process from ordinary to extraordinary for its clients and appraisers.