Four years ago, I bought my house for $230,000. A year later, it was appraised for about $280,000. So this was unhappy news, even though I saw it coming.
The realtor contacted me a couple of days later, to ask if I had received the “Home Evaluation,” and mentioned the difficulty of estimating the value of a house without seeing it. I wasn’t going to bother this guy with questions (I’m not really selling my house any time soon), but given the opportunity I asked him:
I did receive the evaluation – thank you! The details of the homes you sent seem about right. I know that the market has been bad lately, but my home was appraised for $280,000 in 2004, when I refinanced. Do you think that the market has gone down that much that my home would be worth around $230 again? (That’s about what I originally bought it for in 2003).
Good Morning! It’s sad to say but the answer is yes. I have a property that was appraised at 238K at the end of 2005, now I have it for sale at 212K. Another client had her house appraised at 345K in 2005 now it’s for sale at 314K.
This market correction is hard on all of us home owners.
Not quite as drastic as a 50K reduction in price, but still not what I’d like to hear. I have a friend who just bought a new house and is trying to sell his old one — its been on the market for over a month and only two showings. He’s going to have to dip into his 401K if he can’t get his asking price, and that may very well happen.
One thing that could reduce the 50K difference in (very loosely estimated) value — it doesn’t account for any improvements that I’ve made to the property.