Sell My House Top Factors Devaluing Your Home 2 — Questions and Answers
Question 1: A home located next to a busy highway or major road typically experiences what effect on its market value?
- A value increase due to accessibility
- A value decrease of 5–10% or more (Correct answer)
- No measurable impact on value
- A value increase due to commercial proximity
Correct answer: A value decrease of 5–10% or more
Homes near busy highways often sell for 5–10% less due to noise pollution, safety concerns, and reduced desirability.
Question 2: Which type of flooring, if outdated or worn, is most likely to reduce a home's perceived value during a showing?
- Hardwood floors with minor scratches
- Old, stained wall-to-wall carpet (Correct answer)
- Ceramic tile in bathrooms
- Polished concrete in the basement
Correct answer: Old, stained wall-to-wall carpet
Stained or outdated carpeting is one of the first things buyers notice and often leads to lower offers or requests for concessions.
Question 3: How does an unpermitted room addition typically affect a home's sale?
- It adds full appraised value equal to permitted additions
- It must be disclosed and can complicate financing or reduce value (Correct answer)
- It has no impact if the work was done professionally
- It automatically receives a permit at the time of sale
Correct answer: It must be disclosed and can complicate financing or reduce value
Unpermitted additions must be disclosed and can scare off buyers, reduce appraised value, or create lender financing issues.
Question 4: A home's value can drop significantly if it is located in a flood zone. Which document reveals official flood zone designation to buyers?
- The title report
- A FEMA Flood Insurance Rate Map (FIRM) (Correct answer)
- The homeowner's insurance policy
- The county tax assessment
Correct answer: A FEMA Flood Insurance Rate Map (FIRM)
FEMA Flood Insurance Rate Maps officially designate flood zones and are reviewed by buyers and lenders to assess flood risk.
Question 5: Deferred maintenance on a home's roof most directly impacts value because:
- Buyers prefer newer architectural styles anyway
- It signals neglect and raises fears of water damage and costly repairs (Correct answer)
- Insurance companies always require roof replacement before sale
- Appraisers cannot assess roof condition during a standard appraisal
Correct answer: It signals neglect and raises fears of water damage and costly repairs
A worn or damaged roof signals broader neglect and creates buyer fears about hidden water damage, often leading to lower offers.
Question 6: Which neighborhood characteristic is MOST likely to negatively affect nearby home values through a concept called 'external obsolescence'?
- A recently renovated community center
- A new grocery store within walking distance
- A nearby industrial plant or waste facility (Correct answer)
- A well-maintained public park
Correct answer: A nearby industrial plant or waste facility
External obsolescence occurs when factors outside the property—like a nearby industrial plant—reduce value in ways the seller cannot control.
Question 7: A home with only one bathroom in a market where buyers expect at least two is an example of which type of depreciation?
- Physical deterioration
- External obsolescence
- Functional obsolescence (Correct answer)
- Economic depreciation
Correct answer: Functional obsolescence
Functional obsolescence occurs when a home lacks features that current buyers expect, such as a second bathroom or sufficient closet space.
Sell My House Top Factors Devaluing Your Home 2
A home located next to a busy highway or major road typically experiences what effect on its market value?