If you own a home, keeping up with regular maintenance, repairs and replacements is essential to preserve your home’s value. Allowing your property to fall into disrepair can cost you 10% or more in home value when it’s time to sell. Homes in disrepair also take longer to sell and typically receive a much longer list of requests or concessions from a potential buyer.
Visible disrepair may seem like a superficial concern but to buyers, it is a sign that other, more expensive issues are likely present as well. Peeling paint, worn out carpet, broken or missing tiles, missing or leaking gutters and overgrown landscaping are just a few types of visible disrepair buyers see as red flags. When selling a home, first impressions and curb appeal matter. Visible signs of a home being in disrepair repel potential buyers before they make it through the front door.
One of the things appraisers do when preparing their appraisal is to estimate the economic age of the property. The economic age is an indicator of how many years the home can be expected to survive or remain in livable and sellable condition. Forgoing maintenance and upkeep impacts a home’s economic age negatively and lowers the appraised value of the property. Well-maintained homes rate better in terms of economic age and prevent home value from dropping due to disrepair.
Benefits and Costs of Proper Upkeep
Proper upkeep not only maintains home value for future sale, but also ensures safety and prevents small simple fixes from turning into major, more expensive repairs. Experts estimate that over time, home maintenance costs should average out to around $3,000 per year. Some years will be less expensive and entail only small fixes and regular maintenance services on the HVAC system and appliances. Other years will require more expensive repairs or replacements, such as a new roof or replacing the HVAC system. Tracking all maintenance costs and repairs, along with receipts, in one handy place helps you easily check when specific repairs or services were last performed and also help you track your average costs per year over time. Knowing the average annual cost of your home’s maintenance, replacements and repairs helps you save for future upkeep needs.
Forgoing regular maintenance and upkeep on your home and its systems and appliances can cause your property to fall into serious disrepair in a short period of time. Homes in disrepair repel potential buyers, take longer to sell and cause the home’s value to take a steep nosedive. Keeping up with small fixes and regular maintenance saves you money both during your years of ownership and when you’re ready to sell.