With the recent news that home sales did increase slightly in the month of August, unfortunately, it wasn’t so true for the Midwest in general. The Midwest home sales decreased about a total of 6%. Now, I hate to be the bearer of bad news, but I want to make sure you’re educated before you decide if now is the right time to sell. If you have a need, such as a relocation, new job, divorce, budget concerns, etc., by all means, you need to sell.
However, there is a very interesting article from Smart Money that will give you some signs that your home may be losing value. This should help you determine if now is the right time for you to sell, especially if there’s not a strong need. Losing value in a home will not affect you unless you have an immediate need to sell. If you plan on being in your house for years to come, there are no worries whatsoever.
The article states, “‘Individuals who are staying put for at least the next five to seven years will likely recoup the lost value of their home,’ says Amy Bohutinsky, a Zillow.com spokeswoman.” She goes on to say to be wary of borrowing money from your mortgage, however.
So what are the signs? Some are more obvious than others.
1. Foreclosures in your neighborhood. Some of these may be easy to notice because of riders on the real estate signs that say “Foreclosure” or “Bank Owned.” You may have heard gossip from another neighbor. You can contact your local Realtor to look up the property to see what the status is. As homes go into foreclosure, it creates a domino effect in the neighborhood, effectively lowering surrounding homes’ values.
2. Homes with excessive market time. Any home sitting on the market without a sale for more than 3 months can be another factor. It’s generally a good time for the seller to lower their price, which means that a price for another home in the area would most likely be lower, unless there is a significant difference in features of the home.
3. Homes in disrepair. This is one you probably haven’t thought about. If you see homes in your neighborhood in need of a new roof, siding, have missing paint, etc., there’s a good chance that homeowner may be unable to afford to make those repairs. Unfortunately, this could affect the value of your home. It may be worth it to have a neighborhood pow-wow to determine if anything can be done to help everyone out and keep home values steady for the time being.
If you have questions about your home value, or need to know if a neighbor might be in foreclosure, please be sure to visit me online.