The Effect of Maintenance (or Lack Thereof) on Home Value
As a responsible homeowner, you already know that preventative home maintenance is the best way to avoid the cost and hassle of emergency repairs. But did you also know that by making regular home maintenance a priority, you’re having an effect on your home’s overall value? Maybe your home’s value isn’t something you think about very often, but for most people, selling their home is a big part of their retirement plans. For this reason, proactive home maintenance is not only important for keeping your home in good condition, it can also help ensure that you get the highest possible price for your home when you eventually sell. To help you make the most of your home values, let’s go over some of the effects of maintenance – or lack thereof – and why you should start looking at home maintenance as an investment and important part of your financially secure retirement.
Effect on Value
Regular, proactive home maintenance can not only help you to preserve your home’s current value, it can actually increase a home’s value by about 1% each year. If you think about your home as part of your retirement savings, home maintenance is a good way to increase the amount of funds you’ll have available when you decide to retire and sell your home. In this case, the effect of maintenance on the value of your home is a measurable part of growing the funds you’ll need to achieve your retirement goals.
Maintenance that Makes the Most Difference
Not only is proactive home maintenance important for your home value, but certain types of maintenance can actually reduce future costs and make things in your home last a lot longer. For example, regular maintenance on major appliances can help extend the life of your refrigerator and dishwasher, leading to fewer repairs and better longevity. The same is true of your roof, siding, and gutters, among other things.
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While you may be able to do some home maintenance tasks yourself, for most others it’s important to have a professional come and do it for you. Either way, if you don’t already have one, you’ll need to have a system to help remind yourself when maintenance needs to be done. Also, you’ll need trusted home service professionals, like those from Neighborly brands, who you can call to help you with your home maintenance to-do list.
Regular home maintenance can also boost your home’s value by slowing down depreciation. Over time, all property tends to age and begin to show signs of wear. As you have proactive home maintenance done, however, you can better ensure you’ll get that 1% home value increase each year, offsetting both your routine maintenance costs and depreciation declines. At first glance it might seem like you are merely breaking even as you spend on maintenance to get that 1% back. However, that is just in the short term. Over the years that you own the home, regular home maintenance can go a long way toward preventing the downward drag of depreciation and keep your home values as high as they can be. Because your home is an investment, the longer you can help it to last in good condition, the more positively it will impact your plans for retirement.
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Effect of Neglecting Home Maintenance
Good home maintenance can have a measurable positive effect on your home’s value. But the opposite is also true. A house that shows signs of significant wear or damage can actually decrease in value – up to 10%! There are several reasons for this. One of the biggest reasons that a neglected home can lose value is because market rates are set by buyer demand. If buyers see a home with chipped or faded paint, worn carpets, broken fixtures or blinds, sagging gutters, or missing shingles, such issues are likely to drive buyers away and make the home far less competitive. And to sell well, it needs to be competitive! By doing the types of proactive maintenance you are already doing, you can avoid these pitfalls and protect your home’s value.
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Planning Annual Maintenance
Do you plan out your home maintenance schedule at the start of each new year? If not, consider using this guide to get a home maintenance plan in place. You don’t even have to wait until the new year – you can get your home maintenance tasks organized and planned out at any time! Then, you can create your annual plan for each year as it comes, ensuring that proper maintenance is being done on every essential part of your home. Protect your home’s value by getting started today!