Not all properties are created equal, and some carry hidden burdens that can heavily impact their value. According to the latest insights from Open Property Group, a leading quick sale specialist, there are six major red flags that could mean you’re in possession of a problem property, potentially slashing your home’s market price by as much as £57,000.
Unmodernised Homes
Kicking off the list with the least severe yet impactful issue, unmodernised homes can see a significant deduction from their asking price. These properties, lacking in modern bathrooms, kitchens, or requiring extensive decoration, can deter buyers right off the bat. In the current property market, a home stuck in a time warp could mean a 4.3% loss in value, translating to £12,239 less for sellers.
Flood Risk Fears
Properties at risk of flooding, whether due to past incidents or their unfortunate placement on a flood plain, face a steep decline in attractiveness to buyers. This concern can devalue a property by 13.6%, costing sellers a whopping £38,718 on average.
Unsightly Infrastructure
Though necessary for modern living, proximity to powerlines, phone towers, and wind turbines can significantly impact a home’s desirability. These “eyesores” are estimated to reduce a property’s value by 14%, or £39,857, showcasing the high price of visual and environmental intrusions.
Lease Length Limitations
One of the less visible, yet crucial factors affecting property value is the length of its lease. Properties with short leases can see a reduction in value of 15%, or £42,704. Renewing a lease before it dips below 80 years is advisable to avoid this significant hit to your property’s market price.
The Knotweed Nightmare
Japanese Knotweed, a particularly notorious invasive species, poses a similar risk to property values as short leases, potentially reducing a home’s worth by 15% (£42,704). Its presence can be a costly and challenging problem to eradicate, making it a major red flag for potential buyers.
Structural Concerns
At the top of the list of property woes is subsidence, indicating severe structural issues that can frighten off buyers and slash property values by a staggering 20% (£56,938). This issue represents a critical concern that can make a property nearly unsellable at its expected market price.
Expert Advice
Jason Harris-Cohen, CEO of Open Property Group, emphasises the challenges faced by sellers of problem properties in the current market, “No one wants to be lumbered with a problem property, particularly in the current market where buyer demand levels have dropped and potential buyers can afford to be far pickier. There are a whole host of reasons you might find it hard to sell your home, but while some will ultimately depend on buyer preference, we’ve highlighted the big six that are sure to see you struggle. Of course, the alternative is that you take a sizable hit on your asking price in order to secure a buyer, but it’s always advisable to get your home fit for market as the majority of buyers won’t want to take the risk. If you are in need of a quick sale and don’t have time to tackle a major issue such as Knotweed or subsidence, there are other options available to you. You could look at a property auction, although you do run the risk of achieving a far lower price depending on the mood in the room on the day. Or you can opt for a quick sale specialist, who will accurately value your home, warts and all, while also providing you with a concrete timeframe in which to complete your sale.”
Conclusion
Owning a home plagued by any of these six issues can be a daunting prospect, especially in a market that favours the buyer. The key takeaway for sellers is to be proactive—whether that means undertaking necessary renovations, extending leases, tackling invasive species, or addressing structural concerns—to avoid hefty financial losses. For those unable to take such measures, understanding the alternative routes to sale is essential to navigating these property pitfalls effectively.