When it comes to Factors Affecting Resale Value – Some are obvious; some are not.
Some issues are obvious – some are not. But take heart, there are always clues! And, some depend on price point. One interesting observation we have made over the years is that Agents who work with both Buyers and Sellers have a higher sensitivity to resale issues on the purchase. These agents know the pain first hand from having dealt with resale issues in the past as a Listing Agent. Conversely, an agent who specializes only in Buyer transactions may not weigh the issues below as conservatively.
Factors that DO affect a Home’s Resale Value
Location
- Corner of Subdivision Entry (noise, privacy)
- Lots of striping at the neighborhood entry – you KNOW there is a traffic problem when DO NOT BLOCK is written on the street.
- Corner Lot (lack of privacy)
- Next Door to Neighborhood Swim/Tennis facility (lights, noise)
- Next to Neighborhood Detention Pond (maintenance, bugs, unknown, unsightly)
- Straight ahead at a “T” intersection (headlights at night)
- Way back in large subdivision you can’t give easy directions to visitors
- High Tension Powerlines nearby (not talking about older neighborhoods with above ground power lines serving individual houses). High tension powerlines have large metal structures and you can usually hear a slight buzz or crackling when you are close by. Electromagnetic fields (EMF’s for short) are usually the concern and you can find research from both sides. Aesthetically they present a hinderance in real estate even if there is no health danger.
- Pipeline Easement (you can see these in the field – there are no trees and have plastic markers at street crossings). If you are using an online mapping tool, watch for uniform linear areas where there are no trees like the one running diagonally through the photo below.
- Busy Road with a Double Yellow Line
- Elementary School District
- Does the House/Neighborhood need Good Schools?
Lot / Setting
- Culdevision – A word that describes a small development of perhaps 8 homes on one street with a culdesac
- Front door threshold is below street level (curb appeal / possible drainage issues)
- Steep Driveway (less desirable)
- Landscaping versus other homes currently on the market
- Unsightly Neighbors and Views
- Smells (commercial uses, water treatment treatment facilities, paper mills, agricultural areas, etc)
The House Itself
- Synthetic Stucco (stigma)
- Split-level style home (hard to renovate and expand; limits buyer pool)
- Master Bedroom Lower than the front door (odd floor plan)
- Less Than Three bedrooms on the main floors
- Walking through the front door and directly looking at a wall
- Finish-able Basement (Ceiling heights lower than 8ft)
- Main Level Ceiling heights (Higher the better)
- Garage (Size vs Price Point)
- Garage below the main level (Drive Under)
- Garage Front Entry (vs Side Entry)
- No Basement
- On Septic System
- Private (non-shared) Master Bath
- Pocket Renovations (Renovations REALLY expose dated areas)
- More that 2 sets of Stairs
- Flooring Material Consistent throughout (Max 3 different materials)
- Furnishings Match the Price of home
- Value Above my neighboring Peers
- Architecture inconsistent from most in neighborhood
- Swimming Pool in backyard
- “Added Value” improvements are not obvious and/or widely valued
- Deferred Maintenance
- Unanswered questions
- Dirty bathrooms
- Messy garages and basements
- Significantly Larger or Small than neighborhood average
- Smells ( pets, smoke, musty or strong air fresheners = likely hiding something )
- Class Action Building Materials (Siding products, polybutylene, Chinese drywall, laminate wood flooring, Atlas Chalet Shingles, Zurn Pex plumbing fittings).
Factors that DO NOT affect a Home’s Resale Value
- What a homeowner paid for it
- What a homeowner owes on it
- What a homeowner wants for it
- What the neighbor says it is worth
- What a seller’s appraiser says it is worth
- What an uneducated agent says it is worth
- What an agent in another city says it should be worth
- How much it would cost to rebuild it
- What the Zestimate is
- What the tax assessment says it is worth
