After completing a renovation and preparing your property for sale, it’s easy to overlook hidden issues that can significantly reduce its value.
Oren Kander, senior valuer at Gaffsy, highlights five common pitfalls that can negatively impact your investment.
Spray foam insulation: potential devaluation of 15%
Spray foam insulation might seem like an energy-efficient upgrade, but it can cause problems if installed incorrectly. Many mortgage lenders refuse to finance properties with this insulation, leading to a 15% drop in value. Closed-cell spray foam, in particular, can trap moisture, leading to timber decay, damp issues, and added stress to roof structures.
Solution: If your property has spray foam insulation, check with multiple mortgage lenders to see if they will accept it. Make sure to keep installation paperwork on hand and, if necessary, consult a specialist to remove the foam safely.
Damp: potential devaluation of 5% to 30%
Damp is a serious issue that can ruin a property’s décor and cause long-term structural damage, such as crumbling walls and timber decay. Rising damp is particularly problematic, and it could reduce your property’s value by as much as 30%.
Solution: Address damp issues before listing your property. Consider hiring a professional for treatment or commissioning a damp survey so buyers are aware of potential repair costs. Transparency helps avoid significantly lower offers.
Noise pollution: potential devaluation of 5% to 10%
Noise pollution from busy roads or noisy neighbours can make selling a property difficult. Around 22% of buyers are deterred by single glazing, and 43% are put off by noisy neighbours.
Solution: Investing in double or triple glazing can make a big difference. If neighbour noise is an issue, consider mediation or contact your local council if the noise is severe enough to be considered a statutory nuisance.
Unclear boundary lines: potential devaluation of 5% to 15%
Boundary disputes with neighbours can scare off buyers, with 24% of prospective homeowners saying unclear boundaries are a dealbreaker.
Solution: To avoid devaluation, get legal advice and ensure the boundary lines of your property are clearly defined. A boundary agreement, signed by both parties, can clarify property lines and avoid future disputes.
Signs of pests: potential devaluation of 10%
A pest infestation, particularly rodents or termites, can severely damage a property’s structure and reduce its value by 10%. Buyers are often wary, with 34% stating that visible signs of pests would make them reconsider purchasing a home.
Solution: If pests are an issue, take immediate action. Minor infestations can be handled with DIY solutions, but larger problems will require professional pest control services. Addressing the issue quickly will help maintain your property’s value.