Selling Your House in 2023? These 5 Things May Be Lowering Its Value

Your dream home may not have the same appeal for potential buyers.

2022 has been a bad year to be a home buyer, and as we close out the year, it's looking worse and worse for sellers, too. And since no one can predict the future, we don't know what 2023 will look like. As of this writing, the average interest rate on a 30-year fixed-rate mortgage is 6.61%, per Freddie Mac. This is quite a change from where we began 2022, with 3.22% on the same mortgage the first week of January.

Home prices were already up, but when you combine higher prices with staggeringly more expensive mortgages, the wisest course of action for many buyers right now is to wait it out and see if rates drop.

If you're hoping to sell in 2023, you're going to want to put your home in the best light possible. In addition to budgeting $10,245 to cover the costs of landscaping, thorough cleaning, and professional photos for your home's MLS page, have a look at the list below. These features could be potential deal breakers for home buyers, and they could lead to lower offers than you're hoping for.

1. Bold wall coverings

Painting is one of the simpler and less expensive home improvement projects a resourceful homeowner can take on, so it's really no surprise that so many homes have paint colors more suited to the current residents' tastes. Wallpaper is another potential pitfall for getting a good price for your home. It can make a home look incredibly dated, and it's a pain to remove. When it comes to the walls of your home, think neutral when it's time to sell. You want potential buyers to be able to imagine their own tastes on the walls -- try to give them the blank canvas to dream on.

2. Textured walls and ceilings

Even the texture of your walls can present a problem for a potential buyer. Much like wallpaper, texture is messy and hard (plus expensive) to scrape off the walls. And if your home is older, those popcorn ceilings could even contain asbestos, which is carcinogenic.

3. Dated kitchens and bathrooms

Two of the most heavily used parts of a home are the kitchen and the bathrooms. Buyers will want to see reasonably modern fixtures in these rooms, because kitchen cabinets from the 1970s and stained bathtubs are a turnoff that a homeowner will have to look at multiple times a day. Be careful of going too far in the other direction, however -- your taste will likely not match that of potential buyers, and the return on investment for a kitchen remodel is not guaranteed. And kitchen remodels can be expensive.

4. A converted garage

In spring 2020, when the world shut down due to COVID-19, you may have wished for more living space for you and your family. Maybe you converted your garage to get that extra room, and are now intending to sell your home. The fact is that more home buyers will actually want a place to store tools and park their cars than will want a home gym or an in-law apartment where the garage used to be.

5. Swimming pool

I have many happy childhood memories of swimming in my grandparents' pool, and used to think about how cool it would be to have my own pool. As an adult, however, all I can see are big dollar signs. Pools can add significantly to your homeowners insurance costs, and can also present a big maintenance hassle. And if you live somewhere with distinct seasons, buyers may not want to pay extra for a feature they can only use a few months a year -- but must drain, winterize, and pay to insure even when it's not swimming season. And if they have kids or frequent young visitors, the pool could be dangerous.

If your home has some of these features (or all of them), does it mean you're doomed to field only lowball offers from potential buyers? Not necessarily. But it's worth considering the financial impact they could have on your attempt to sell your home in 2023.