Buyers look at multiple things while purchasing a property. They consider the interiors and exteriors of the property, the neighbourhood, connectivity, resale value and much more. While there are positive things that raise the price of a property, there are, in more cases than not, certain aspects which work to reduce its price.
Buyers, after identifying such aspects, use them as leverage during final price negotiations to get you to reduce the price of your property.
These are specific things - with some being in your control to fix and some not being within your control – that can reduce the value of your home.
It would be best if you studied the aspects which would work against your property and reduce its value. For better understanding, let’s divide these aspects into things which you can and cannot change.
While you should work on the things which are in your power to fix, you should also try to think of ways to explain the negative aspects to buyers in a way that does not lead to an excessive price reduction or cancellation of the deal. It is advisable to speak to a locally-based broker for this purpose as well. These aspects have been classified as external and internal inhibitors and are as follows:
Exterior inhibitors (not in your power to fix)
Negative local factors: These include eyesores in your neighbourhood which could be near your property, such as garbage dumps, slum settlements, massive landfills, and mobile towers. Some of these things, like mobile towers and landfills, while being eyesores, can also be perceived as bad for health and can lead buyers to not valuing your property as much as set by you.
Lack of adequate infrastructure: This factor concerns the transport, social and civic infrastructure of the locality where your property is situated. Perhaps, the locality is not well-connected to employment hubs through road or rail, or maybe it does not have decent schools or hospitals located close to it. There could also be a lack of adequate water or power supply in your area. These aspects can work a great deal to reduce a property’s value.
Excess supply in the market: This is a scenario where there are many more homes for sale in an area than there are buyers for the same. In such times, sellers are often compelled to reduce the price to match the prevailing market prices or to close a deal amid stiff competition.
Noise pollution: Properties located near or next to noisy transport infrastructures, such as busy roadways or railways, also often see their value drop owing to worsened liveability of the property because of the chronic noise pollution.
History: A history of crime in the neighbourhood or a history of a dispute regarding the property in question can lead to value reduction.
Poorly designed property/building: In case the property you want to sell has been designed inefficiently or is not as aesthetically pleasing, such as it having narrow corridors or a bedroom being sized much smaller than the others in an apartment, etc. can lead to value reduction. The building in which your property is situated in could also be in poor condition with peeling paint or large cracks.
Lack of modern amenities: In present times, buyers are used to seeing certain modern amenities in properties, such as piped gas or a home security system, with an intercom in apartments within a gated society, among others. A lack of these can make a buyer value your property at a lesser amount than those properties which do have these amenities.
Internal inhibitors (more or less in your control to fix)
Interior/exterior eyesores: These include unsightly interior and exterior aspects of the property in question. The interior eyesores include large stains, seepage or large cracks on the wall or the ceiling and peeling wall paint. An uncleaned apartment with debris lying around can also significantly reduce the value of your property due to buyers forming a negative impression of it and not perceiving it to be of the stated value.
External eyesores (with regards to an independent villa) comprise of broken/damaged entry gates, large cracks or peeling paint on the outer wall or looking as if in deplorable condition.
Try to spend some time coming up with a narrative about your property that focuses on the positives while reducing the attention on the uncontrollable negative factors to minimise value reduction and improve the chances of buyers shortlisting the property you want to sell.