5 things to avoid that can devalue your home

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

Military homeownership: Your guide to resources, financing and more

For today's homebuyers, time and money are everything

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

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

Money Moments: Tips for selling your home

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

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

Mortgages after retirement: Here’s what to know

10 ways to increase your home’s curb appeal

DIY home projects 101: tips from a first-timer

Is it the right time to refinance your mortgage?

6 questions to ask before buying a new home

5 things to avoid that can devalue your home

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

What is a mortgage?

What you need to know about renting

8 steps to take before you buy a home

What is refinancing a mortgage?

Are professional movers worth the cost?

Building a dream home that fits your life

What to know when buying a home with your significant other

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

Mortgage basics: 3 key steps in the homebuying process

Mortgage basics: How much house can you afford?

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

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

How you can take advantage of low mortgage rates

Mortgage basics: Finding the right home loan for you

Quiz: How prepared are you to buy a home?

Uncover the cost: Home renovation

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

Tips for realtors to help clients get their homeownership goals back on track

5 ways to maximize your garage sale profits 

Putting home ownership within reach for a diverse workforce

What’s the difference between Fannie Mae and Freddie Mac?

How jumbo loans can help home buyers and your builder business

Simple steps to be ready for a natural disaster

Checklist: financial recovery after a natural disaster

Pros and cons of a personal line credit

3 tips for saving money when moving to a new home

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

Checklist: 10 things to look for when touring a home

How to sell and buy a home at the same time

Dear Money Mentor: What is cash-out refinancing and is it right for you?

Home improvements with the best ROI

How we did it: Converted to solar power

PCS moving checklist for military spouses and families

Crypto + Homebuying: Impacts on the real estate market

How I did it: Bought my dream home using equity

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

Managing the impacts of appraisal gaps in a hot housing market

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

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

Your guide to breaking the rental cycle

Checklist: 6 to-dos for after a move

What are conforming loan limits and why are they increasing

Uncover the cost: Building a home

The lowdown on 6 myths about buying a home

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

Get more home for your money with these tips

Money Moments: How to finance a home addition

First-time homebuyer’s guide to getting a mortgage

Dear Money Mentor: When should I refinance a mortgage?

Beyond the mortgage: Other costs for homeowners

10 questions to ask when hiring a contractor

What is an escrow account? Do I have one?

These small home improvement projects offer big returns on investment

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

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

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

How to use your home equity to finance home improvements

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

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

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

4 questions to ask before you buy an investment property

10 uses for a home equity loan

Improving your credit score: Truth and myths revealed

What types of credit scores qualify for a mortgage?

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 through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.