A house needs to be properly maintained to retain and eventually raise its value. It is an investment that, if you give it enough time, will yield better returns.
In real estate, the loss has minimized the longer you stay in the property. Because it is an entirely separate arena, it is not as volatile nor it is affected by changes in the stock market.
However, sometimes, despite your efforts, things happen unexpectedly. You were playing a game of baseball in your yard with your kids, for example, and someone accidentally threw too hard, damaging the window. Or, one night, someone spilled red wine on the hardwood floor, leaving a stain.
These things happen. Most of the time, they can be repaired. But, what if your home faced a more serious disaster in the past? How will it affect the value of your home? Find out below.
A House Fire
A house fire is very common in the United States. The most recent report by the National Fire Protection Association, the fire department responded to an average of 353,100 house fires per year between 2014 and 2018. In total, house fires represent more than a quarter of reported fire incidents across the country.
There are reasons why house fires begin, the most common of which are cooking, heating equipment, electrical and lighting equipment, and smoking materials. A small number is intentional, too.
A normal household is filled to the brim with things that may start a fire and, most of the time, people are unaware of the hazards. One example is the air duct.
Hot air passes through the air ducts placed around the house. It collects dust over time which is flammable. Combined, the hot air and the dust can start a fire.
Regular air duct cleaning and replacing the filters can reduce the amount of dust floating around and accumulating in nooks and crevices.
A natural disaster sometimes happens unexpectedly and with devastating outcomes. A strong hurricane, for example, can send winds that can uproot old trees and rain that can cause floodings. In coastal areas, it can push waves to grow larger and reclaim whatever is within their reach.
Although people can prepare and minimize the damage, no one can know exactly what will happen. Major natural disasters such as, as mentioned, a hurricane and an earthquake leave destruction costing billions of dollars in total. People lose their homes, their belongings, and even their loved ones.
When Mother Nature strikes, no one can prevent her from decimating anything from her path. With climate change exacerbating because of the unmitigated emission of greenhouse gases, weather patterns may change in the future and throw more intense natural disasters to towns and cities worldwide.
Usually, insurance covers natural disasters but it is sometimes not enough to cover repair for all damages. FEMA also offers aid, but not everyone can qualify.
If you cannot patch up the home and remove evidence of natural disasters, you may be looking at a lower resale value. Moreover, it will be challenging to sell the property to a buyer. Anyone will feel anxious buying a house in an area that has been hit badly by a natural disaster.
Death is natural and likely will not affect the value of your home. However, a murder or a homicide is an entirely different story.
A dark past will definitely lower the value of your home. A potential buyer will turn away because of superstition. To this day, people still believe in ghosts and hauntings. If a wrongful death happened in your home, they will unlikely buy it.
And, when no one wants to buy your house, you will be forced to offer it at a much lower price tag. You have no choice but to disclose the incident either because, in many states, you are legally required to tell a buyer about death within the property.
If the death occurred decades ago, you may be spared. If it is fairly recent, you have to share the details. It all depends on what your local regulations say. Better check what is applicable to your situation.
Most homeowners complete the purchase of a house with the expectation that one day if they need more room as their family and income grow, they can sell it at a higher price. A real estate property is a valuable investment and many people go into it to build their wealth.
However, certain things happen that are beyond anyone’s control. The house can be damaged by disasters or events, lowering its value. The best thing one can do is to prepare and hope that it will be enough to minimize consequences.