Home Buying in Port Richmond>Question Details

Kathie R.joh…, Other/Just Looking in Philadelphia, PA

What do I do if a house I bought last year has now depreciated in worth $15,000.00?

Asked by Kathie R.johns, Philadelphia, PA Mon Jun 1, 2009

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Hello Kathie,

I do have a question for you. How do you know your home depreciated that much or at all?

Another question that I have is, was the home really ever worth what you paid? As you are aware, the real estate market is not the same as it was even a year ago. There were a lot of unethical Realtors, lenders and appraisers out there and innocent people like yourself were taken advantage of.

Not knowing all of the facts, those are just two of the questions I have with regard to your situation. Perhaps you paid too much for the home to begin with.

Now, if the home went back to what it is actually worth, you may have lost value. There is nothing you can do about that now.

If you need to sell, then you would have to list your home for what it is now actually worth and perhaps take a loss. If you can get enough to pay off the mortgage, then that is the important part. If you can't even get enough to pay off the mortgage, you would have to go to settlement with the difference to pay back the lender.

If you have to sell, you could find a Realtor who is an expert with short sales which is a whole different story.

If you do not have to sell, then no worries. Your home will appreciate again and if you make any improvements, that will only help your situation. Improve the bathrooms and the kitchen. That is what most buyers want and what appraisers really look for.

If you want to provide more information, that would be great,.

Feel free to contact me if you have any questions for me.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Jun 1, 2009
Don't sell it, because you will lose money if you do. If you need to sell, just realize that most homes also went down in value. In fact, if you do sell, move up into a better home. Don't move down.

I'll try to explain. Let's say that homes in your are went down 10% in value. This means that a $100K home is now worth $90K ($10K difference) and a $200K home is now worth $180K ($20K difference). So the $100K is only $10K cheaper while the $200K home is now $20K cheaper. So put that $20K sale to good use.

Always think opposite of what is going on. In a down economy, you can move up. In an up economy, it's best to move down.

Because of the economy being so poor currently, I would not recommend selling or buying anything unless you need to buy something. And when you do buy, make sure your dollar goes as far as it can.

I hope that helps,

Terrence Charest, e-Pro
0 votes Thank Flag Link Mon Jun 1, 2009
Kathie,
Unfortunately, there's not really much you can do. Right now, people all over the country have seen a trend in depreciated property and we just have to ride out the storm together. I will suggest that you have your home appraised by a professional appraiser. If you are looking at your tax statement or a realtor told you this, the information could be wrong. Hire a professional...it should give you a more accurate measure of what your home is worth.

Hope this helps!!
0 votes Thank Flag Link Mon Jun 1, 2009
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