How You Can Avoid Home Depreciation

The biggest concern of a home owner is that it will depreciate before it’s sold. This, of course, defeats the entire purpose of home investing and puts you at risk for losing money instead of making it.

While home depreciation can be financially devastating, it is uncommon: most homes appreciate, at least in normal, recession-free markets. Still, there are things you can do as a home owner to help your house retain its value and even increase its financial return.

The Appreciation of a Home

Per ABC News, many people assume that homes appreciate 7 percent each year. However, this number is quite optimistic: surveys suggest that the real answer is somewhere between 2 and 5 percent each year. Still, coupled with inflation this can cause a home to be worth much more only a few years after purchase. Home appreciation isn’t given: keeping your home worthy of resale takes effort on your part.

Helping a Home Increase Its Value

Per the San Francisco Gate, the best way to increase a home’s value is to stay away from things that add to depreciation. This comes with bad and good news.

The bad news is that some of the issues that cause depreciation are out of your control. Having troublesome neighbors – such as those who throw loud parties, park on their lawns, or, much worse, are registered sex offenders – can all decrease your home’s value drastically. A house in an area that is waning in quality and becoming much more crime-ridden will also be worth less than a house in an area that is booming, with malls, shopping areas, cultural centers, and good schools nearby. A house in an area prone to natural disasters – such as Tornado Alley – will, likewise, go for less than one in an area with little to no severe weather to be concerned about.

The good news is that there are many things that are within your control, things you can do to help your home sell for tens of thousands more than which you bought it.

Remodeling and Upgrading

Potential home buyers love a remodel and an upgrade; it requires a little shelling out of cash on your part, but you’ll likely get it back in spades. Kitchen remodels, bathroom remodels, basement finishes, and hardwood floors all increase the value of your home by quite a bit. But, remodeling your home doesn’t have to involve spending a ton of money – something as simple as new, energy-saving appliances, a new water heater, and a new paint job can all add a lot of value.

Home Maintenance

Another simple way to keep your home’s value increasing rather than plummeting is to perform regular home maintenance. This helps your home on two fronts: first of all, regular maintenance helps prevent major catastrophes. Regular maintenance also makes your home more presentable, which is always appealing to a buyer.


Most realtors will tell you that first impressions matter; you really don’t get a second chance to make one. First impressions are so important that curb appeal must be at the forefront of issues you’re concerned with. A home that looks tattered on the outside, with peeling paint, weedy lawns, and a patio that looks worthy of seizure by the city will all lower your chances of a sale instantly. It is because of this that your home’s exterior – particularly the front that buyers see first – should be as well-kept as possible. Things like new landscaping, flowers, and beautiful outdoor water fountains all come across as inviting, and have the potential to draw buyers to your home in droves.

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