Five property flaws that can come back to haunt you at resale
The compromises buyers accept in a booming market can become major obstacles when it's time to sell.
Over the past five years, Australian property buyers have faced strong demand, limited housing supply and fierce competition, particularly in desirable suburbs and affordable price brackets.
For many, buying wasn’t about finding the perfect property. It was about securing something before prices moved further out of reach and FOMO also played a part.
As a result, buyers became increasingly willing to compromise on characteristics they might ordinarily consider dealbreakers. Busy roads, railway noise, poor floor plans and properties requiring substantial maintenance were suddenly acceptable.
And in many cases, buyers paid premium prices for properties with these shortcomings.
But there was one professional who wasn’t overlooking them. The property valuer.
Here’s what I’ve consistently observed. The characteristics buyers overlook in a booming market are often the very same characteristics they struggle to overcome when it’s time to sell in a declining market.
The market has changed, but the property hasn’t
When stock is limited and competition is strong, buyers become more forgiving. But when market conditions soften and purchasers have more choice, those compromises become harder to ignore.
Suddenly, buyers can compare properties, negotiate and become selective. A property that attracted multiple offers during the boom may now struggle to generate interest.
Five characteristics that can significantly influence resale value:
1. Main roads and traffic exposure
Two properties in the same suburb, offering similar accommodation, can attract very different prices simply because one sits on a busy road.
Traffic noise, reduced privacy, difficult driveway access and safety concerns can all affect buyer demand. While buyers may overlook these disadvantages in a strong market, quieter residential streets generally become more attractive when there’s greater choice.
2. Railway lines and environmental noise
Properties near railway lines, flight paths or other persistent noise sources can face similar challenges.
While some purchasers may accept these compromises, others consider them significant disadvantages. The impact depends on the intensity of the noise, proximity and available alternatives.
These are characteristics a valuer considers, even when buyers are prepared to overlook them.
3. Poorly designed floor plans
Having four bedrooms doesn’t necessarily make a property a desirable four-bedroom home.
Awkward room configurations, poorly positioned bedrooms, inadequate living spaces and limited storage can significantly affect functionality.
Buyers might convince themselves they can make an impractical layout work. But future purchasers may not agree, particularly when rectifying the floor plan problem involves expensive structural alterations.
4. Poor orientation and natural light
A well-oriented property with good natural light, privacy and functional outdoor spaces will generally attract stronger interest than a comparable property that’s dark or overshadowed.
This is particularly relevant for apartments and townhouses, where neighbouring buildings can significantly affect sunlight.
Unlike replacing a kitchen or bathroom, changing a property’s orientation is often impossible.
5. Significant maintenance requirements
Older properties can have considerable charm, but roof repairs, drainage problems, ageing services and structural concerns can involve substantial costs.
In a strong market, buyers may underestimate these expenses. In a softer market, purchasers often factor in not only repair costs but also the inconvenience, uncertainty and associated risks.
Think about buying property like buying a car.
Imagine inspecting two second-hand cars of the same make, model and year.
One is exceptionally maintained. The other has higher kilometres, dents and mechanical problems.
Would you pay the same price for both? Of course not.
Yet buyers sometimes overlook equivalent disadvantages when purchasing a property worth hundreds of thousands, or even millions, of dollars.
The real risk isn’t buying a property with shortcomings. It’s paying a premium without accounting for them.
There’s nothing inherently wrong with purchasing a property on a main road or near railway tracks, provided the price reflects those disadvantages.
You can renovate a kitchen, replace flooring and repaint walls. But you can’t relocate a road, move a railway line or change a property’s orientation.
Before purchasing, ask yourself, if ten comparable properties were available, would I still choose this one and pay the same price?
Ultimately, market conditions are temporary, but many property characteristics are permanent. You can compromise on a property, but you should never overlook the value of the compromise you’re making.
