There are a number of things that affect property values. Many things are outside the scope of control of individual homeowners. Some things, such as the economy, are constantly shifting. They may have turned in your favor for an extended period of time only to unexpectedly shift in the opposite direction (due to any number of circumstances seen or unforeseen). There are clear signs that our current seller’s market, which was gaining strength before the pandemic, is now starting to shift to a buyer’s market. It might be time to sell your home while conditions are still mostly in your favor.
It pays to stay informed and be active in your local community. Unruly neighbors, underperforming schools, future plans for landfills or power plants can all take their toll on property values. While there are a limited number of spots available on local select boards, New Hampshire residents take part in the proud New England tradition of direct democracy through annual town meetings. Your voice is heard, and your vote counts, in issues that can (and will) affect property values. It pays to be a good citizen and stay involved.
Fortunately, one of the best ways to maintain your home’s value is well within your reach. Simply take care of your home. Regular maintenance and repairs are essential: painting, cleaning, landscaping, necessary home repairs, and scheduling regular HVAC service.
Here are some of the external and internal factors that decrease the value of your home in more detail.
Unruly Neighbors: Unfortunately we have little control over who moves in next door, or in the neighborhood. Perhaps the next door neighbors decided to move to a different climate (with a little less winter in the mix). The new neighbors may turn out to be unruly by hosting loud parties and ignoring landscaping and maintenance. Unruly neighbors will bring down the value of their homes, and other homes in the neighborhood. Getting to know your neighbors by hosting events is a great way to build stronger communication in the neighborhood to help resolve problems before they begin.
Undesirable School Districts: If your local public school district has performed poorly over time and has difficulty passing a budget to make improvements, your home’s value will suffer. The National Bureau of Economic Research has shown that for every $1 increase spent in schools, local property values increase by $20. Fortunately in New Hampshire, we meet the needs of our public education system to garner success. We spend over $17,000 per student (second only to Vermont). The money invested in local school districts in New Hampshire helps to maintain local property values.
Undesirable Businesses: If your home or neighborhood is close to undesirable businesses, the property values decrease. It is important to keep up to date on future developments. Power plants, homeless shelters, funeral homes, cemeteries, strip clubs, and shooting ranges can all have a negative impact on property values.
The Economy: During hard times, when jobs become unstable or elusive, home values often decrease. There will be fewer buyers and property values will be affected. Generally speaking, during a recession, property values suffer.
Poor Maintenance: While the vast majority of homeowners have little control over external factors affecting their property values, they do hold an important key. You will maintain your home's value by taking care of it properly.
Your yard work should be performed on a regular basis. Your major household systems (HVAC) should be serviced regularly and filters should be replaced at the proper intervals. Repairs should be made in a timely manner when problems arise before bigger problems follow. Improper maintenance will decrease the value of your home.
Undesirable Renovations: Different renovations appeal to different people in various markets. When considering any major renovation (garage, kitchen, bathroom) consulting with your trusted local real estate agent is wise. The seller’s agents at Pelletier Realty Group have the experience and knowledge of the local market to help you make informed decisions on desirable renovations that will help to sell your home for the highest price.
For example, if you have made renovations to your garage to accommodate a home office, gym, or anything else you may have effectively lowered the value of your property. Garage renovations can be attractive, but potential buyers are more commonly looking for a place to park their cars. You should plan accordingly whenever undertaking a garage renovation.