
Every REALTOR belongs to a local REALTOR Alliance Group. I belong to the Tri County Suburban REALTORS Alliance, and recently they sent out a little crash course with some tips on the value of home maintenance so I wanted to share what I learned from them with you. A little time, effort, and money can help you save in the long run. Here are some important reasons why regular home maintenance is key to preserving the value of your house and property.
1. Maintenance Affects Property Value
Without regular upkeep, overall property values are affected, and a rough appearance is bound to turn off prospective buyers and depress the selling price.
2. Prolonging Economic Age
Diligent maintenance affects an appraisers estimate of a property's economic age - the number of years a house is expected to survive. A well maintained house with a long healthy age depreciates at a much slower rate that a poorly maintained house.
3. Estimating the Value of maintenance
A recent study suggests that maintenance increases the value of a house by about 1% each year. While the costs of maintenance offset this gain, the net effect is that regular upkeep slows the rate of depreciation when compared to a poorly maintained house.
4. How much does maintenance cost?
Although it varies from year to year, based on upkeep (like cleaning gutters) to big projects (like a new roof), many mortgage companies place the expected costs at 1to 3% of the initial purchase price.
5. Proactive Maintenance Strategies
Consider strategies to make the upkeep affordable and fun, like having a cash reserve dedicated to home maintenance, conducting periodic inspections, space out your fixes and keep records of your preservation and upgrades.
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