When assessing the market value of a property, the ideas of the buyer and seller often differ widely. Because while the buyers primarily see the costs associated with the purchase, the apartment owners always have in mind how much money they have invested in the conversion of the property. Therefore, it is not uncommon for homeowners to overestimate the value of their property.
Unusual colors lower the value of a property
Unlike the tenants, the owners of apartments have significantly more freedom with regard to the design of their residence. While tenants are often only allowed to make small adjustments such as painting rooms or designing the garden without prior consultation with the landlord, homeowners can freely live out their ideas when building a house.
But there are a few things to consider here: The more individual and unusual a house is designed, the more difficult it is to sell the apartment. So while a neon green kitchen may be appealing and innovative to the owner, the likelihood that many people share this view tends to be low. Simplicity and restrained elegance often pay off more in retrospect when it comes to apartment design, because the general public prefers the ordinary. So if you intend to sell your apartment at a high price, it can be worth doing without weird colors and shapes or adapting them when selling.
Keep the room layout as uncomplicated as possible
The following also applies to the division of the rooms: the more unusual the layout of the rooms, the lower the value of the property. In general, an appropriate size of the rooms is an advantage, because only a fraction of the broad masses can do something with tiny storage rooms or large ballrooms. When viewing a house, buyers often take into account any conversion costs that may arise. So the more walls that have to be moved or removed, the more expensive it will be for the buyer afterwards. Unusual room layouts can therefore significantly reduce the purchase price.
Age and energy balance of the house
Aside from the cosmetic aspects of a home, age and energy balance also affect a home’s value. Older houses often have more charm than newer buildings, but they are also significantly higher maintenance costs than their younger counterparts. Older houses often lack insulation or thermal insulation on the roof, which drives up energy costs enormously.
If a house is already very old and in need of renovation, this can lead to a significant reduction in value. Because many buyers shy away from a so-called renovation backlog – the need to renovate a large number of stations in the house for a lot of money. Many potential customers are put off by this, which significantly reduces the market value of the property.
Open construction causes additional additional costs
Furthermore, the open design that is often typical of modern houses can also reduce the value of the property. Because a combination of living and dining area brings more light into the apartment, but can also cause the costs for heating to rise enormously. Due to the smaller number of delimiting walls in new houses, adjoining rooms are also heated, which causes additional expenses. Even if many people are quite willing to bear these costs, every additional cost center in the house can lead to a reduction in the value of the property.
Luxury goods and property size can reduce the value
Many people dream of having their own pool or conservatory in their own home. But even such luxury goods always come with high operating or maintenance costs along. While swimming pools or saunas are often standard in richer society, they can also be an exclusion criterion for average earners if the additional costs are too high.
The same applies to the size of the property. In the luxury segment, many square meters significantly increase the value of the property; Normal earners, on the other hand, always keep an eye on the costs. A large property can mean high bills – for example for the maintenance of the lawn and the trees. Gardens that are too large are therefore not necessarily value-enhancing for the broader social class.
Of course, these evaluation criteria do not apply without exception; it is therefore always possible that certain factors in certain sections of the population tend to increase rather than decrease value.
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