5 things to avoid that can devalue your home

July 26, 2018

Did you know that you can lose equity by how you treat your home? Here are five things to avoid.

 

Home equity is the difference between the value of your home and what you owe on your mortgage.

You can build equity by paying down your mortgage – but did you know that you can lose equity by how you treat your home?

Here are five things to avoid that could reduce the value of your home.

 

1. Rough renovations

Renovation projects are likely the first thing that comes to mind when people think about increasing equity. It’s true that putting money into good renovations is a solid investment and will raise your home’s value, but there is a vital emphasis on these being good renovations. A project gone wrong can make your home look worse, and in some situations, like a DIY mess. Prospective buyers will see these renovations as something they’ll have to redo, rather than a selling point for the home. So plan your projects carefully and enlist professional help if needed. And make sure you do your homework before hiring a contractor.

 

2. Unusual renovations

Along with poor-quality renovations, getting an unusual renovation can also lower your equity. Kitchen and bathroom renovations usually have the highest impact, but only if potential buyers will find them attractive and functional. The secret lies in simplicity and mass appeal. In kitchens, it’s safest to stick with renovations to the sink, countertops and cabinets. In the bathroom, invest in neutral, pleasant flooring and fixtures, and express your individuality with decorative accents. 

 

3. Extreme customization

It’s your home, so you’re free to express your personality in the interior however you’d like. But when you’re trying to sell, consider that your personal tastes could be different from those of some buyers. Prospective buyers like to visualize their own lives and belongings in a house, and that’s difficult if the interior is highly customized. You don’t need to paint every wall hospital-white, but put yourself in a buyer’s shoes and choose neutral colors and décor likely to appeal to a wide range of people. And remember, the darker the color you put on a wall, the more work it is for a potential buyer to cover it with their preferred color.

 

4. An untidy exterior

The exterior is the first part of your home that potential buyers will see. If your yard is in serious need of some weeding or trimming, it will make your house look messy and give buyers the impression that the yard will require a lot of upkeep. Old fences, worn siding and peeling paint all give buyers the impression of future improvement projects of the less-fun variety. If you’re ready to list your house, keep your exterior free of extraneous items like kids’ toys during open houses and private showings. Learn some quick ways to boost your home's curb appeal.

 

5. Skipped daily upkeep

Performing routine maintenance plays a large part in preserving your home’s value and can even increase its equity. Devise a home maintenance schedule and stick to it. Even simple tasks like regularly changing your furnace filter can make a difference in your home’s condition and value.

 

Ready to put your home equity to work for you? Use our home equity calculator to get your estimate and to learn more about home equity options.

Related content

Dear Money Mentor: When should I refinance a mortgage?

Should you buy a house that’s still under construction?

Starting your homebuying journey: Tips from a U.S. Bank Goals Coach

Overcoming high interest rates: Getting your homeownership goals back on track

Building a dream home that fits your life

6 questions to ask before buying a new home

Webinar: Mortgage basics: How much house can you afford?

These small home improvement projects offer big returns on investment

What you need to know about renting

What is a home equity line of credit (HELOC) and what can it be used for?

Is it the right time to refinance your mortgage?

5 things to avoid that can devalue your home

Managing the impacts of appraisal gaps in a hot housing market

Military homeownership: Your guide to resources, financing and more

Is it cheaper to build or buy a house

What are conforming loan limits and why are they increasing

Bringing economic opportunity to underserved communities one home at a time

How I did it: My house remodel

8 steps to take before you buy a home

5 financial benefits of investing in a vacation home

Your guide to breaking the rental cycle

4 ways to free up your budget (and your life) with a smaller home

Get more home for your money with these tips

First-time homebuyer’s guide to getting a mortgage

How does a home equity line of credit (HELOC) work?

What is a mortgage?

Home buying myths: Realities of owning a home

Improving your credit score: Truth and myths revealed

DIY home projects 101: tips from a first-timer

How we did it: Converted to solar power

Money Moments: How to finance a home addition

PCS moving checklist for military spouses and families

Putting home ownership within reach for a diverse workforce

Community activist achieves dream of homeownership

For today's homebuyers, time and money are everything

Checklist: financial recovery after a natural disaster

How I did it: Bought a home without a 20 percent down payment

House Hacks: How buying an investment property worked as my first home

The lowdown on 6 myths about buying a home

What’s a subordination agreement, and why does it matter?

What is an escrow account? Do I have one?

Money Moments: Tips for selling your home

What types of credit scores qualify for a mortgage?

Should you get a home equity loan or a home equity line of credit?

Quiz: How prepared are you to buy a home?

How I did it: Bought my dream home using equity

Buying a home Q&A: What made three homeowners fall in love with their new home

How I did it: Built living spaces to support my family

Spring cleaning checklist for your home: 5 budget-boosting tasks

Saving for a down payment: Where should I keep my money?

Checklist: 6 to-dos for after a move

Webinar: Uncover the cost: Building a home

Are professional movers worth the cost?

10 questions to ask when hiring a contractor

How you can take advantage of low mortgage rates

4 questions to ask before you buy an investment property

10 ways to increase your home’s curb appeal

Webinar: Uncover the cost: Home renovation

Is a home equity line of credit (HELOC) right for you?

10 uses for a home equity loan

Preparing for homeownership: A guide for LGBTQ+ homebuyers

Beyond the mortgage: Other costs for homeowners

How to use your home equity to finance home improvements

What to know when buying a home with your significant other

Webinar: Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Webinar: Mortgage basics: Buying or renting – What’s right for you?

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

Webinar: Mortgage basics: Finding the right home loan for you

Webinar: Mortgage basics: 3 Key steps in the homebuying process

What is refinancing a mortgage?

Home equity: Small ways to improve the value of your home

How to prepare for a natural disaster

Crypto + Homebuying: Impacts on the real estate market

Webinar: Buying a home in 2022: what to expect

How jumbo loans can help home buyers and your builder business

Can you take advantage of the dead equity in your home?

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.