Search Listings

That Face You Make When Your Realtor Gives You The Value Of Your Home

I have had home sellers ask my advice about what to do when they discover that the value of their home is less than they like or need in order to sell their home and buy the new one that they really want to own.

For the most part, I think we all have the same initial reaction when we find out we've lost equity in our homes, but this typical reaction is actually a poor choice for most sellers at this time.

You see, most sellers decide to wait for home values to rise before selling, and while this seems to make sense at first blush, as a homeowner you have to realize that your home does not exist in a vacuum and the rest of the market is going to grow in value at a similar rate (as your home will grow in value). So all the while that you wait for your home value to improve, two major changes are happening in the market that you really ought to understand today.

How To React To Home Value Advice

Home Seller Value AdviceIf you are like most home sellers over the past year, the image on the right accurately captures your reaction upon learning your home's current market value.

I urge you to fight the impulse to explain why your home has defied all the supply and demand imbalances that have impacted the rest of the market. Instead, ask your Tallahassee Realtor to show you the comparable properties that she used to estimate you current market value.

A top real estate listing agent can help you get top dollar for your home when you sell it, but don't be fooled by the ones that tell you they can get you more than it is worth.

The Home You Want To Buy

Fortunately for you, the home that you want to buy has likely been hit by the same market forces that caused your home to decline in value. So it's not like you lost money in your home and then you have to go pay "the old price" for the home that you want to buy. It too has lost value in this market.

So think of it this way. Whether you sell your home and buy a new one, or you just stay where you are, you home will go up in value in the coming years. So the big question is ...

Joe Manausa real estate quotes   Where do you want to live right now, when home values are on the rise?

Think of it as moving your lost equity from your current home to the home where you'd like to live now.

Mortgage Interest Rates

A key factor in this decision making process for buyers who finance their home is the impact of rising mortgage interest rates. Rates are on the rise, and that means while you wait to regain equity in your current home, not only is the value of your future home on the rise, so too is the cost of borrowing money to buy that home. This is a double-whammy that makes waiting more costlier than buying now for most buyers.

There are some financial situations, some areas, and some price ranges where waiting might still be the smartest option, but I would strongly urge you to meet with a market expert to evaluate your current situation and your desired housing status. If you would like our help, we would be happy to sit down with you for a no-strings-attached consultation. To get that started, simply drop me a note and we'll be in touch right away.


#1 By Tom Horn at 7/11/2017 3:49 AM

Great post Joe. Appraisers face this same situation when owners see their appraisal. You make some great points for buyers about their home not existing in a vacuum since other properties are going through the same market forces. By the way, great visual with the post.

#2 By Joe Manausa at 7/11/2017 3:49 AM

Thanks Tom, I imagine you do deal with this any time your appraisal differs from the contract price.

Post a Comment

Blog Navigation

Posts By Category

All Categories Advice: Real Estate (496) Blogging Real Estate (187) Distressed Property (32) Foreclosures (4) Glossary of Real Estate Terms (33) Government and Real Estate (31) Homes For Sale (159) Housing Market Conditions (1270) Housing Report (54) Lis Pendens (4) Main (1018) Mortgage / Finance (74) New Construction (19) Off Topic (87) Our Listings (3) Our Sales (7) Real Estate Market Snapshot (26) Real Estate Opinion (3) REALTOR News (11) Tallahassee (90) Tallahassee Neighborhoods (643) Team Member (1) Uncategorized (50)

Posts By Month

Blog Roll

Luxury Homes For Sale New Construction Homes For Sale Homes For Sale With Swimming Pools Homes For Sale On Acreage Homes For Sale In Golden Eagle Plantation Homes For Sale In Killearn Lakes Plantation Homes For Sale In Killearn Estates Homes For Sale In Southwood Homes For Sale In Killearn Acres Homes For Sale In Summerbrooke Homes For Sale In Piney Z Homes For Sale In Bull Run Homes For Sale In Betton Homes For Sale In The Ox Bottom Area

Tag Cloud

Grab Our RSS Feed

Tallahassee Home Searches

Contact Us

Joe Manausa Real Estate
1934 Dellwood Drive
Tallahassee, FL 32303
(850) 366-8917