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12 reasons why your home might sell for less than you expect

Oct 3, 2019, 02:52 IST

Artazum/Shutterstock

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  • Opendoor, a real estate technology company, looked at the factors that most detracted from a home's value in 20 cities across the US.
  • It found that while things like having carpeting and an outdated kitchen could decrease your home's values, location factors you can't have control may be the most costly.
  • Living in an industrial area could drop your home's value by nearly $10,000 on average, and having a sloped backyard could drop your home's value by an average of about $7,000.
  • Read more personal finance coverage.

If you're getting ready to sell your home, you probably have already put a lot of thought into things like its curb appeal, fresh paint, and small repairs. Maybe you've bought new appliances, or even had major home repairs or remodels done that you've been putting off. But, there are some things that you simply can't change that could be bringing your home's value down.

Real estate technology company Opendoor's real estate trends expert Beatrice de Jong tells Business Insider that while you should do the things you can to add to your home's value, other things - like where your home is located and the lot its on- are more about setting realistic pricing expectations.

A study by Opendoor looked at purchase offers made on homes between June 2018 and June 2019 in 20 US metro areas. They averaged the amount each issue with a home brought the offers down. Things like replacing cheap countertops, swapping carpet for another flooring type, and changing out cabinet doors made the list of issues that decreased a home's value the most, on average.

But, some things you can't change are the most costly detractors, like having commercial neighbors, a sloped backyard, or less-than-tidy neighbors - which could bring down offers by $5,000 or more.

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Whether they can be fixed or not, Opendoor found that these 12 things are the most likely to take away from your home's value.

12. Outdated kitchen cabinets

Average value this subtracts from a home: $2,100

"The kitchen is really a main focal point in the house," De Jong says. So, anything you do there could bring a nice value increase.

When it comes to cabinets, she suggests making them look as updated as possible. "Depending on what kind of shape the kitchen is currently in, you may be able to easily refinish them or just replace the doors," she says.

11. A sloped driveway

Average value this subtracts from a home: $2,400

Those short, slanted driveways in hilly, urban areas could be a problem. "We're talking about those really steep ones that you feel like you have to have an SUV to drive up," de Jong says.

There's not much a seller can do to remedy it, but de Jong adds that sellers should set their price expectations accordingly. "Look at other home sales in the area and compare them," she says.

10. Lack of landscaping

Average value this detracts from a home: $2,600

In the front yard, having little to no landscaping could be detrimental to a house's curb appeal. And in the back yard, it just makes the space look less appealing.

"You don't want the grass to have dead patches," says de Jong. "We want there to be bright, colorful, pretty flowers that are inviting."

In today's online real estate market, making your home look good in photos is critical, and landscaping is an important element to that. "Nowadays, that's the real first impression that people have," says de Jong. "They're already forming a relationship with photos of a listed home before even considering going to the house. You definitely want to put the best foot forward."

9. Power lines near the home

Average value this subtracts from a home: $2,700

"If you have power lines going across a backyard or have the actual pole in the yard, people don't like it," says de Jong. "They're worried about their health and they have a constant buzzing sound that be a bit irritating."

But she says power lines can be more of a deterrent in some areas than others. "If you live in a city that's just full of power lines, it's probably not going to be a big deal to people who are just used to it. But especially in the suburbs, comparing one home to the other, if there are two homes that look pretty similar but one has power lines in the backyard, that's gonna be a big deterrent," says de Jong.

And while this is another issue that can't truly be fixed, it is one that she says is worth pricing accordingly for.

8. Low-quality cabinetry

Average value this subtracts from a home: $3,000

Like the mention of outdated kitchen cabinets earlier, low-quality cabinetry is another reason potential buyers might find fault with your home's kitchen.

De Jong suggests evaluating what shape the kitchen is in, and deciding your budget for repairs, or the appropriate adjustement to your expectations. "It depends on what state the kitchen is in," says de Jong. "It may be a big overhaul job."

7. The house is on busy street, or on a corner

Average value this subtracts from a home: $3,800

It seems like it would be convenient to live in the middle everything. But, De Jong says this can actually be a detractor to your house's value.

"A busy street is going to deter people who have families," says de Jong. "If it's difficult to pull into your driveway, that's something that's pretty noticeable to a home buyer right away. And with homes that are on a corner, it may also mean less privacy."

And while a quiet location may be non-negotiable for families with children or who like the quiet, there are some things to do to curb the privacy concerns. De Jong suggests investing in a few good sets of curtains while you're selling, or even planting some hedges near the house to make a small barrier.

6. Carpet in the master bedroom

Average value this subtracts from a home: $3,800

"Carpet is just not in style anymore," says de Jong. "It's always had a bad rap because everybody just thinks about the germs that are sitting in it. Especially when it gets worn in, it can make a house feel dingy."

And that's not a feeling anyone wants in their home's new master bedroom.

De Jong suggests taking on the cost of swapping it out. "There are plenty of inexpensive options out there," she says. "There might be hardwood floors underneath those carpets that can just be refinished — that's really appealing to buyers," she adds.

5. Carpet as the main flooring type

Average value this subtracts from a home: $3,900

It's not just the bedroom where people don't want to see carpeting — it's the same all through house. If your main flooring type is carpeting, it might be worth swapping it out before putting your home on the market.

4. Outdated kitchen countertops

Average value this subtracts from a home: $4,600

Another big ding against a kitchen is the countertops. Formica or tile countertops could be a good idea to replace. "Tastes have gotten better, and we like things that feel a little bit more quality. Formica just tends to feel cheap and plastic-y," says de Jong.

And this might be the only thing your kitchen needs, too. "If your kitchen looks pretty modern, just replacing the countertops can instantly transform it to look really sleek," she says.

3. Unsightly neighbors

Average value this subtracts from a home: $5,200

You may keep your home pristine, but your neighbors could also be affecting your home value.

"It makes the neighborhood look a little less safe," de Jong says. With this issue, there aren't many options. It might be more about pricing accordingly, and considering that when choosing your next home.

2. A sloped backyard

Average value this subtracts from a home: $7,000

If your backyard isn't level, it could really affect your home's value. "You're kind of at a loss for actually being able to use that space if you can't put a barbecue and some furniture out there," says de Jong.

1. Commercial neighbors

Average value this subtracts from a home: $9,600

While the industrial style might be in at the moment, having actual industrial neighbors isn't so much.

"Location is the most important thing in real estate," says de Jong. "People want to buy a home that is in a nice neighborhood that feels safe, and is maybe within walking distance of a park and coffee shops and restaurants and all that good stuff."

"If you're the odd man out in a commercial neighborhood, there's not really much to do," she adds.

It's not something that's possible to change, but it should be something you price for. "It doesn't have that cozy homey feeling that people want when they come home at the end of the day," says de Jong.

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