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Unseen Problems That Can Affect Real Estate Prices

Many unseen problems can potentially affect the price of your property. These problems can be categorized into three groups: physical, functional and external obsolescence. Fortunately, most of these problems are curable. Left unchecked, these problems can carry stigma, which can affect real estate values in the long-term.


The presence of mold in a property can affect its value. Mold has long-term effects on property values. Dealing with this problem involves making others aware that the mold problem has been remediated by mold remediation professionals and the property has received a post-remediation clearance by relevant authorities. However, the new owners of the property will find it difficult to obtain homeowners’ insurance on the property.

The best way to deal with the mold issue is to practice preventive maintenance. This involves making sure windows and doors are sealed to prevent excess moisture from entering the house and checking gutters to ensure water drains away from the house.

Structural damage

Structural damage and foundational problems can negatively affect the value of real estate. Mildew growth, water leaks, earthquakes and erosion can cause structural damage. Properties with structural damage can experience considerable reduction in value during appraisal. If you can see mold, all signs point to structural damage being not far behind.

Foundational damage can have the most effect on property value because any weakness or damage in the foundation puts the whole house at risk. The effect of structural damage on the value of a property is determined by the extent of the damage.

Unattractive Appearance

The value of your property will decrease if it does not have curb appeal. The outward appearance of your home acts as the formal introduction to your property. Poor landscaping and yard maintenance negatively affect the value of your property. Many potential property investors will strike off properties from their lists based simply on outward appearance. Curb appeal is a sure way of increasing the value of your property. Overgrown shrubbery and old windows will negatively affect property values. Mold is one of the leading factors that can contribute to unattractive appearance in a home.

Disreputable Community Information

While a well-maintained house can fetch a high appraisal value, the house’s immediate surroundings can have an opposite effect. The value of a property is determined by what buyers are willing to pay to live in that neighborhood. High local area tax levels and low quality of life in the neighborhood can lower the value of real estate in the neighborhood.

The value of a property in a low crime area will be higher than the value of a similar property in a high crime area. Properties located in topnotch school districts have higher values than those located in struggling districts. Other factors in the community such as business climate and housing market affect property values. Your property value will decrease if it is located in an area that has inconsistent business growth and poor housing market.

Unsuitable Location

There is a strong link between the perceived value of a property and the popularity of its location. A property will appraise for a higher value if it is located near points of interest. A house in a suburban area will have a higher value than a similar house in a rural area. Your property will appraise for a lower value if it is located in a flood zone. A similar property located near a beach will appraise for a higher value.

Sarah is a small business owner, and is currently learning about pest control, using the internet. Aside from working on her own business, she likes to use social media, and read travel books. 

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One thought to “Unseen Problems That Can Affect Real Estate Prices”

  1. Mold can often sink a real estate transaction. Often this is found during the home inspection. It would be pertinent of a seller or the listing agent to remove the mold before a would be buyer be scared off.

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