The American Dream Of Home Ownership Shattered..What’s Your Home Really Worth?

Assuming you have equity in your home, the decision to list your home is not an easy one these days.  The better you understand the real estate market, the easier it will be for you to deal with the truth.

I would hate to be the listing agent who gets the dreaded call asking “where did you come up with your listing price?” This is becoming an epidemic here in Tampa! Why put your home on the market if you are going to overprice it by 100K?  If there’s one thing I’ve learned it is that people think they want to hear the truth, unless it’s not what they want to hear.  And trust me, most people don’t really want to know what their home is worth.

There’s nothing more dreadful these days then telling a homeowner their property is worth 40% less than what is was valued at 5 years ago.  People depended on the equity in their homes to retire, and now their lifestyle won’t be quite the same as what they had envisioned.  I hear the story all the time about how we were going to retire, buy a home in North Carolina and live the American Dream.  The so called “American Dream” has been shattered.  Yes, this is very hard to come to terms with.  Dealing with the emotional aspects of selling your biggest asset is hard enough without saying to yourself  “if only I would have sold at the peak of the market”.  

Here are the top 3 things to understand when you are considering selling your home:

1.  First and foremost, your home has to appraise.

What happens in the appraisal process?  Here’s what a local appraiser has to say…

We look for the most comparable sales regardless of short sales and foreclosures. Some homes do sell at market value, and some don’t. Some foreclosures are trashed and they can’t be comparable to a regular home sale. Jeff Alpert, of Action Appraisal Services, said “Homes in South Tampa are in desirable neighborhoods are selling for same amount most of the time. However, everything is on a case by case basis. The reality is the home must appraise, and appraisers are using short sales and foreclosures as comps.”

2.  Your home IS like everyone else’s, only priced higher.

Buyers really don’t care that you have 12″ tile cut on the diagonal, or that you spent 20K on Brazilian cherry cabinets.   They would rather know that they aren’t overpaying for a home that may actually depreciate in value in the next year.   Are you in a better position to sell your home with all the updates? Yes, of course but just don’t expect to get the money you put into it back.  Look at it instead at something were able enjoy while you were living in the home and not as an appreciating asset.

3.  Take an offer from a pre-qualified buyer seriously.

If you get an offer look at it seriously! You may not get another for months, and what seemed like a bad offer may wind up being a good one down the road.  I was actually told by a listing agent that the seller was scared to take my buyer’s offer because they were doing a VA loan.  Really?  Consider yourself lucky to get an offer like this! VA mortgages have strict guidelines and not everyone can qualify for 100% financing.  So what if they aren’t bringing any money to closing? It’s a benefit for serving our Country.

The bottom line is that real estate is worth what the market says it’s worth.  It’s either a buyer’s market or a seller’s market, but never both.

Find out what your home is worth by speaking with a real estate professional who specializes in your market area, price your home competitively and your home will sell.  Overprice your home and you’ll only be competing with homes that are priced right, including short sales and foreclosures.

The only one who can answer the question “is this the right time to sell?” is you.

See also:

Selling your home as a short sale? Find out why you should use a short sale expert!

• Certified Property Distressed Agents (CDPE)-Tampa, Fl (thetamparealestateinsider.com)