How Property Value Decreases Over Time
For anyone with any experience in the property market, whether that be as a realtor or simply a home buyer or seller (usually both) who has navigated the property market before, it comes as no surprise that home value can fluctuate. Moreover, it can do so on account of a staggering range of diverse factors. Nevertheless, all of these factors can be neatly grouped into two different categories. The first of these is all the things that a homeowner can do to a home to increase or decrease its value, including making renovations or filling the home with fashionable furniture. The second category involves those factors that are completely out of the control of any homeowner, or the bigger changes that effect value over time.
These things can either increase or decrease value. But as space is limited, we might focus here on the things that can decrease a property’s value gradually over time. Many of these factors are related to the environment outside of the home itself. The bigger trends and changes that take place across the district, town or even country within which property is situated. In other words, we are answering the question: what causes a property’s value to decrease over time?
What Can You Do About it?
As mentioned above, many of these bigger factors which decrease a property’s value over time have nothing to do with any changes that a homeowner might make to a property. That does not, however, mean that nothing can be done about a property with an asking price in terminal decline. For sure, you might not be able to do anything about whatever is causing the decline, but you can maybe do something to ameliorate the damage – even if this is simply selling before it is too late.
CityHome Collective, a real estate brokerage out of Salt Lake City, Utah, recommends that homeowners always keep themselves abreast of the longer-term changes that can sap a home’s value. Any decent realtor should be able to supply information on this when selling your home – and offer advice regarding any possible solutions. Sometimes though it takes nothing short of government action to do something about decreasing property prices. Occasionally, simply installing double-glazed windows isn’t going to cut it. Here then are some factors that can decrease a home’s value:
The Economy
A healthy and functioning economy is important for all commercial areas – not just property. However, where the economy can play a major role in the decrease of home value is if jobs are becoming scarce in the local area. This then decreases the value of the area as a whole – usually slowly – as job opportunities begin to dry up.
The Environment
As the public becomes more environmentally conscious, environmental hazards are receiving more publicity than ever before. And if there is an environmental hazard close to your home, then this is rarely going to be kept quiet. If the local river is becoming more and more polluted, or a gas plant nearby is reported to have been leaking methane, then house prices will start to decline.
Changing Demographics
If homes are going to go for high prices, then there needs to be a ready supply of buyers willing to pay them. If there is any type of economic migration out of the local area, then the demographics of the area will change – and not in favor of your house value.
Although they can occasionally be sudden, these factors mostly make themselves more and more felt over time. Keep alert, keep an eye on the news and surrounding area, and you could get advance warning. Then it is time to sell.
