Real estate value trends are always changing. Home market value can change very quickly, within months or sometimes even weeks. (The bursting of the California housing bubble is one such example.)
Home market value in a given area fluctuates according to many different factors. The main one, of course, is the economy. This affects everything, from how much money people make to interest rates.
Other factors, though minor in comparison to economical ones, also affect home market value. Some of these include the state of your neighborhood, future development plans and access to schools and amenities. Physical factors like the age of your house and the size of your lot play a role too.
Some of these home market value factors are within an owner’s means to control. Others are not. Are you toying with the idea of selling? Perhaps you’re concerned about your property value and worried about the possibility of a loss. If this is the case, here are three things that you can weigh against the idea of selling in a buyer’s market:
1) Put off selling. Hold off for a few months or even a couple of years. No one wants to lose money on their house. This scenario will likely prove to be a considerable financial setback. It might even be a catalyst for financial disaster. Your best hope of avoiding a loss might be waiting.
Of course, this is a gamble. There’s no guarantee that your valuation is going to improve in the near future. Speak to a real estate agent and/or a loans officer about what your future may hold. A professional who is “in-the-know” might have some intelligent insight into whether waiting to sell is a viable option.
What if you have no choice but to move? Sometimes a job change or other circumstances make staying in your house impossible. It might be worth considering renting out your property under these circumstances. This may help you to avoid a loss, or at least lessen that loss somewhat.
Strive to cover your mortgage plus expenses for a few months or even a couple of years until the market turns around. If nothing else, you may be able to buy yourself a little time to make a less-pressured decision.
2) Make cosmetic improvements. Cosmetic improvements won’t necessarily add lasting home market value. However, an unkempt or outdated property will certainly be the last to sell in a buyer’s market with heavy competition. Sometimes all it takes to compete with the house down the block is a little bit of TLC.
Paint walls, trim hedges, plant flowers, replace flooring. Be prepared to spend a few thousand dollars if needed. This can be tough in a slow economy. It can also be a difficult idea to swallow knowing it won’t come back to you when you sell.
It may be a better alternative though, than having your house stagnate for months on the market. In fact, it may cost you less in the end, particularly if you are under a deadline to sell.
3) Fix what’s broken. Buyers don’t mind coming into a new house and putting money into it to personalize it. However, few buyers like the idea of purchasing a house that needs a large-scale repair right away. Slapping down $10,000 on a new roof, for instance, is something a majority of potential buyers will simply avoid.
Like spending money on cosmetic repairs, some homeowners find this idea a difficult pill to swallow. Remember, in a buyer’s market, buyers have lots to choose from. Most will take the easiest route to getting what they want. A major issue like a bad roof decreases valuation. Again, competing with the seller down the block may necessitate the spending of some money.
As with cosmetic issues, not all repairs will necessarily increase home market value. If possible, though, you should consider not just repairing but upgrading as well.
If your roof needs to be replaced, for instance, consider using a better material than asphalt shingles. Tile roofing will set you back considerably more. However, it may also increase home market value. Plus, the fact that a new owner might never have to replace the roof again may be just what’s needed to close the sale.
Home price valuation isn’t just for homeowners looking to sell. Shea Real Estate offers home market analysis at San Diego Land Experts.
http://www.shea-realestate.com/home_worth.php
http://www.sandiegolandexperts.com/
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