What Decreases Property Value?
There are many factors that can lower the property’s value. These factors include poor kitchens, proximity of McDonald’s and Primark, shady school districts, and even a nearby well with shale gas. These factors are helpful for property owners.
Living near a Primark or McDonald’s
Recent research has shown that a property located near a McDonald’s or Primark can reduce its value by as much as 24%. According to the study, a house in an area with a McDonald’s or Primark is less likely to sell for PS31,000 than a similar home in another area. However, the reverse is true. Living near a Waitrose supermarket could increase a property’s worth by as much as PS21,000.
Living in a shady school district
Living in a poor school area can decrease your property’s worth. The value of a home goes up when the schools are good, but a lackluster school district can scare away potential buyers. The quality of a school district is determined by its school test scores. It can pay off in the long-term to invest in staging your property in a great school district.
Living near a shale gas well
According to an American Economic Review study, living near a shale well can decrease the property value by as much as 16.7%. The study analyzed home values in 43 counties in New York and Pennsylvania. This effect did not affect properties with piped water.
Unemployment
Unemployment is one major factor that can impact the property’s market value. It has a negative impact on the real estate market because it takes away potential buyers. The real estate market has been affected by an increase in unemployment over the past few years.
Low school ratings
Low school ratings aren’t the only cause of decreased property value. Multiple studies have shown that the quality and quantity of public education can have an impact on a property’s market value. GreatSchools’ recent study found that high-rated schools can raise property values by as much $7,000 over three year. The study also found that highly rated schools are more likely to attract families who are white and affluent.
Natural disasters
Property values can be severely affected by the effects of natural catastrophes. The market can be affected for many years when homes are destroyed or damaged. This can increase homeowners’ risk of becoming delinquent. Even unaffected homes could be a target for foreclosure.
Unattractive location
An unattractive location will lower your property’s value. A neighborhood with poor schools will be less desirable. Unattractive sights, sounds, or smells will also decrease the value of your property. A home near a busy highway or airport won’t appeal to most buyers. Airport noise and railroad tracks can also reduce a home’s value.