Whether you’re planning to sell your home or just want to protect your biggest investment, it’s important to know what can bring down property value.
Some factors that affect your home’s value are beyond your control, such as market conditions, interest rates, and the economy. Others, like neglected maintenance or poorly done renovations, can directly reduce your property’s worth.
While you can’t change everything, small improvements now can make a big difference later. Here are eight factors that could be hurting your property value – some you can fix, others to keep on your radar.
1. Neglected maintenance
If your home needs a lot of work, buyers will notice – and they’ll factor that into what they’re willing to pay. Things like a dated HVAC system, worn-out roof, aging plumbing, or even small repairs that have piled up can make your home feel neglected. Some buyers include an inspection contingency and will likely try to negotiate repairs to avoid major expenses after closing.
According to Steve Welty, CEO of Goodlife Property Management, “An aging roof, an old HVAC system, or years of putting off exterior paint and caulking can add up fast.” These seemingly minor issues often signal larger maintenance concerns to buyers.
The impact goes beyond appearances. Ron Phillips, Founder and CEO of Lineage, explains, “A roof or HVAC past its service life, dated electrical, or aging plumbing will make a buyer demand a price cut, and a good inspector catches every one.” In many cases, inspection findings become negotiation leverage that directly affects your sale price.
Deferred maintenance is one of the most common answers to the question of what hurts property value, because it tells buyers they may be inheriting costly repairs.
Tip: Stay on top of regular maintenance like servicing your furnace, checking the roof, and sealing the driveway. If something breaks, fix it promptly – or hire a pro. Waiting often makes repairs more expensive and can hurt your home’s value over time.
2. Outdated or overly personal design choices
Today’s buyers tend to gravitate toward homes that feel clean, updated, and easy to personalize. Outdated finishes, worn fixtures, and highly specific design choices can make it harder for buyers to picture themselves living in the space.
Leah Shaffran, Marketing Director at Frias Properties of Aspen Snowmass, notes, “Even small visible issues like a worn entry, dated fixtures, or a unit that hasn’t been refreshed in several seasons – can suppress long-term asset value.”
What to do: Opt for neutral colors, simple finishes, and clean design. You don’t have to renovate everything, but small updates can go a long way in making your home feel move-in ready.
3. Poor curb appeal
It’s true what they say, first impressions matter. If your front yard is overgrown or your paint is peeling, it can send the message that the inside of the home might be just as rough, which can bring down your property value.
Curb appeal plays a major role in attracting buyers online and in person. Before anyone steps through the front door, they’re already forming opinions based on what they see from the street.
Shaffran explains “deferred maintenance, inconsistent upkeep between occupants, and neglected curb appeal” are among the factors that most consistently erode property value. When buyers see cracked walkways, dead landscaping, or an aging exterior, they often assume there may be larger maintenance issues waiting inside.
Try this: Power wash your siding, clean up the landscaping (and maybe add a few of the best trees that work well in your yard), and give your front door a fresh coat of paint. These small, low-cost upgrades can instantly boost your home’s curb appeal.
4. Unpermitted work
Unpermitted work can lower a home’s value by creating added risk and uncertainty for buyers. Renovations or additions completed without the proper permits may not meet local building codes, potentially leading to safety concerns, costly corrections, fines, or delays during the sale. Unpermitted renovations might:
- Delay your sale: Buyers or lenders may delay closing until issues are resolved.
- Reduce sale price: Buyers may offer less to cover potential repair costs or risks
- Cost you in negotiations: Buyers could demand concessions or repairs.
- Trigger inspection issues: Inspectors may flag unpermitted work as a safety or compliance concern.
- Natural disasters: Damage from storms, fires, earthquakes, or hurricanes can lower property value.
- Flood zones: Homes in high-risk flood areas often have reduced value due to mandatory flood insurance and flood damage concerns.
Poorly executed DIY projects can also work against you. Welty warns, “DIY upgrades are another common issue; a bathroom remodel that doesn’t look professionally done can do more harm than good.”
Similarly, Phillips adds, “Inspection-related discoveries often become deal-breakers after a contract is signed.” Buyers may be willing to overlook cosmetic flaws, but they are far less forgiving when it comes to questionable renovations or structural concerns.
Advice: Before listing, check with your city or county to make sure any additions or major home improvements are properly documented and permitted. It’s important to have the right building permits in place to avoid issues during the sale.
5. Bad odors
This one doesn’t get talked about enough. Lingering odors from pets, smoking, mildew, or musty basements can turn buyers away almost immediately. The source may be easy to fix, but the impression it leaves can be difficult to overcome.
Bad smells can make buyers wonder whether there are hidden issues behind the walls, such as water damage, mold, poor ventilation, or neglected maintenance. In other words, odors can indirectly contribute to what hurts property value by creating doubt and making a home feel less cared for.
Next steps: Deep-clean carpets, air out the home, and consider using an ozone machine if needed to eliminate persistent smells before showings.
6. Over-customization
A built-in wine cellar, game room, or a garage turned home gym may have been perfect for you, but too much customization can make it harder for buyers to see themselves in the space. When features are too specific or unusual, they can narrow the appeal and potentially limit your pool of interested buyers.
Welty has seen this firsthand, noting that homeowners sometimes “hurt their own value with unpermitted additions or renovations that are so custom they actually turn off buyers.”
If you’re renovating: Keep resale in mind. Unique features can add value – especially if they’re flexible or easy to remove – but avoid overly personal or permanent changes that might deter future buyers.
7. Overpricing your home
It’s tempting to aim high, especially in a seller’s market, but pricing too far above comparable homes can lead to your property sitting on the market longer than necessary. Once a listing gets stale, buyers start wondering what’s wrong.
Even a well-maintained home can lose momentum if it’s priced unrealistically. Fewer showings often lead to fewer offers, and eventual price reductions can make buyers think the home has underlying problems.
One overlooked factor that can also affect home values – particularly in condos and townhome communities – is the financial health of the homeowners association. Chris d’Eon, Chief Marketing Officer at Smart Property, explains, “Buyers and lenders, including Fannie Mae and Freddie Mac, are increasingly scrutinizing reserve fund health before closing.” He adds that “an underfunded HOA can restrict a buyer’s financing options entirely, shrinking the buyer pool and dragging down market value.”
Next steps: Work with a knowledgeable real estate agent who can help you price your home accurately based on local market trends, neighborhood conditions, and recent sales.
What about the factors you can’t control?
While many factors affecting your home’s value are within your reach, some are beyond your control. These include:
- Location challenges. Proximity to busy roads, noisy neighbors, airports, or industrial sites can impact buyer interest.
- Market conditions. Changes in interest rates, economic trends, and local housing inventory affect property values.
- Local regulations. Zoning changes and planned developments can influence desirability.
- Neighborhood foreclosures. Distressed sales nearby may impact comparable values.
- Noise pollution. Persistent traffic, train, or commercial noise can reduce buyer demand.
- Natural disaster risks. Flooding, wildfires, hurricanes, or earthquakes can affect home values and insurance costs.
- Flood zones. Homes in high-risk flood areas often face additional insurance requirements and buyer concerns.
Although you can’t fix these issues, being upfront with buyers and working with an experienced real estate agent can help set realistic expectations and highlight your home’s strengths.
Tip: Focus on what you can control – maintenance, repairs, pricing, and presentation. While some factors are unavoidable, addressing the common issues that hurt property value can help your home stand out and attract stronger offers.
What brings down property value and how to fix it
A lot of what brings down property value comes down to how buyers perceive your home. Do they see a place they can easily make their own, or one that feels like work? By addressing issues early, being honest about location challenges, and leaning on expert guidance, you can avoid some common pitfalls and make the most of your home’s potential value.
The post What Brings Down Property Value? 8 Surprising Things That Can Hurt Your Home’s Worth appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
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