Impact of Pests in the Real Estate Industry

As children, we grew up watching or hearing about the story of Cinderella. We know the basics — her stepmother and stepsisters treated her badly. Then, she meets the Fairy Godmother, who helps her get a chance for a night out with the prince at a magical ball. We know that her days at home working as a helper is aided by her friends, the mice. Two mice, in particular, have a very close relationship with her. Jaq and Gus were reliable friends to Cinderella. Their friendship is one of the great things about Cinderella’s story. But there is still one thing about this setup that irks a lot of us. And that is having mice at home.

We shouldn’t ever forget about the fact that rodents are still pests that have no business infiltrating a clean home. Thus, they and other pests are a problem that realtors continue to face. Just catching a glimpse of a rodent scampering away in a dark corner already prompts an urgent need for rodent control. Professionals are instantly called to eliminate the problem.

It’s because, if it comes down to it, no one would really want to live in a home where rats and other pests are roaming about. This is how pests are affecting the real estate industry.

Structural and Electrical Damage on the House

It goes without saying that safety is the first priority that all homes should have. It’s the first thing that could make or break a homebuyer’s interest in the houses that they’re looking at. So it doesn’t help at all when the structural integrity of homes is compromised because of pests, particularly termites. Homebuyers walk out the minute that they catch a glimpse of termites inside the home.

The effect of termites doesn’t happen overnight, though. But even if they just infest a wood beam or column, then there’s a big chance that the ceiling or roof would fall through. It takes extensive and expensive repairs to fix the foundation of a home. And it would make a huge impact on the value of the home. Thus, people who want to make some money by selling their house only end up with more expenses. According to the National Pest Management Association, termites cause one of the highest damages in homes across the United States. Their damage can reach up to $5 billion in just a year.

Another huge issue that pests cause is electrical damage. Rodents, in particular, have this incessant need to chew on something. It’s because they never stop teething. This means that once they start chewing on something, they will never stop. Unfortunately, a lot of the time, they’re chewing on electric wires. If that happens, then people end up with, again, paying for repairs. This time, it’s for electrical repairs.

Bringing Down the Value of the House

Because pests are not at all appealing to homebuyers, they can easily bring down the value of homes. The reduction in value could reach as high as 25 percent, especially so if termites are involved. This reduction is caused by all of the damage that they cause to homes. It won’t matter if the house looks pristine with its newly painted exteriors and interiors. Just a sight of termites can make buyers question how much they’re gaining by buying the home.

Plus, the buyers can leverage the presence of pests when it comes to negotiating. This is because getting rid of pests can cost them a lot of money. This is why the pest control industry is a billion-dollar industry that experiences an annual growth of about five percent.

Damaged Reputation of Buildings

One pest-infested home can hardly damage the reputation of a whole neighborhood. When homebuyers see a home that has pests in it, they will just turn to another home in the same area. But this is different when it comes to apartment buildings. If one apartment builds up a rodent infestation, then it’s safe to assume that the rodents can have access to other apartment units, too.

This would, then, have an effect on the reputation of a building. If people know that some of the units there have a problem with pests, then they would just end up looking elsewhere. In effect, this makes the work of realtors much, much harder.

Pests are a part of nature. We all know that. And it’s great that characters such as Cinderella have shown us the value of having a balanced relationship with nature. But we shouldn’t fool ourselves. No one would happily live in a home that’s filled with pests. Knowing how they can affect the real estate industry can help us understand their negative effects on homes.

Categorized as Management

By David Reynolds

David is the visionary author behind our business blog's comprehensive coverage of business management, finance, marketing, entrepreneurship, logistics, and investment. With a strong background in strategic business consulting, David brings a wealth of experience and expertise to the table. His passion for empowering businesses to thrive fuels his commitment to providing valuable insights and practical guidance. From unlocking the secrets of effective management to navigating the intricate world of finance, marketing, logistics, and investment, David's articles offer actionable strategies and innovative approaches. Join him on this transformative journey and unlock the keys to business success in today's dynamic marketplace.

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