It might be appealing to buy a house and lot for sale in Bacolod City, famous for its moniker ‘The City of Smiles.’ Why? Bacolod City got the 2nd spot on The Tourist Spots Finder’s ‘Top 10 Most Livable Cities in the Philippines 2015.’ The Top Tens, a website where lists are based on votes, placed it on third. Not bad considering how hard it is to find a livable city nowadays. However, it doesn’t add up to the total value of your home.
First off, you need to understand which part of your property appreciates and depreciates over time. If a lot of land is included in the for sale house in Bacolod City, you’ve made a right decision there. According to Investopedia, “land is an appreciating asset” because “the demand for land is constantly growing as the population increases, and since its supply is limited, its price must increase over time.”
On the other hand, the physical structure or the house that sits on it is the depreciating asset. And it will eventually lose its charm because of the following factors:
Poor location
Yes, you’ve defied the classic real estate adage “location, location, location” when you chose a house away from the major roads, retail establishments, schools, and other things that make a house easily livable. You’re lucky because you’re inside Bacolod City where every for sale house and lot has great ‘walkability’ but anywhere else, bad proximity could mean full-cost discount.
Adding a personal touch
We understand it is your house—YOURS. But when the time comes that you need to let it go, we can’t assure you that that Victorian-style kitchen would be appreciated by the next homeowner. Trulia states, “Most buyers want to put their own stamp on their new home rather than pay a premium for your renovation.”
Don’t make permanent and drastic renovations that would totally alter the overall appearance of the house.
Skipping home maintenance
Or not doing any at all. This is one of the primary reasons a home depreciates. Even a miniscule repair is noticeable to an appraiser or buyer. Simple house projects like broken faucet or chipped window pane would not drain your wallet. A fresh coat of paint could make the house good as new. A well-kepmt and clean house increases a home’s value.
Overdoing home renovations
Keep your upgrades at a minimum. An over improved house can be rated as an expensive purchase to a homebuyer and can affect its salability. According to Nasdaq.com, “homebuyers gravitate toward homes that are standard in your area. So… keep it simple.”
The site also advises to visit other homes in your neighborhood before doing an upgrade or hire an expert to do your estimations.
Negative history
In case you’re contemplating to buy an old one, you should know the history of the house and the place you’re moving in to. Is crime rampant there or is the house itself a scene of a crime? Is the area flood-free? Did a fire occur near the house? Does it have noisy partying neighbors or do they have noisy pets? These types of events lower the value of a house.
Shrinking the layout
Think twice before you divide a certain part of your house. Homebuyers consider the spaciousness of a home. Stan Humphries, a Zillow.com chief economist, tells the U.S. News that “layout is a key factor because an open-concept design can look much more spacious than a boxy space of the same size.” Maximize the space as much as possible.
Choosing a foreclosure graveyard place
Where did the neighbors go? If you chose an area with more empty houses than neighbors, then the homebuyer may perceive it as a lonely place to live at. It is also an indication that there is something eerily wrong with the place. It would hurt the public image of your house and your neighborhood unless the house is situated in a newly-built subdivision.
Never take for granted the value of your house because it is one of the important investments you’ll buy in your lifetime.