S Jones, Home Seller in Cumberland, MD

My question relates to loss of value.

Asked by S Jones, Cumberland, MD Mon May 26, 2008

If a home that was custom built in 2001, sold in early 06. What % of loss approximately has the home suffered in the current market since that time? The home is high end, 3-4 beds 2 1/2 baths on over 4 acres in Cumberland RI. I've heard the loss is between 10-15% selling now in comparison to 2006.

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The information you have given is not really enough to say with any certainty what the value of your home may be. Value is local, so local in fact that values vary from one street to another. In example, my home is in a neighborhood that adjoins another that is so similar that most people would not think there is a difference in values. There is. Homes in my neighborhood sell for 8%-10% more than in the adjoining neighborhood.

Don't believe everything you hear about the housing market, unless it comes from someone who is qualified to make an assessment. If you have some need to know, like you plan to sell, interview a few agents.
2 votes Thank Flag Link Mon May 26, 2008
There can be a number of reasons why you might want to know the value of the home now. So if you are thinking of marketing the home definately get CMA's done by local Realtors. If you are tring to prove to the local tax board that your appraisal is too high then contact an appraiser to do the research. Although I've written letters of value that homeownres have used I'd still go the appraiser route.
either way the process is the same. Both the Realtor and the appraiser look at recent sales, the difference lies in maket value and "conservative probable" market value. Both are opinions and ususlly well founded. The only real way to know the market value is to get a ready and willing buyer to say they will pay X for the property.
0 votes Thank Flag Link Mon May 26, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
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I agree that real estate is definitely local and that you should speak with a LOCAL Realtor in your area so they can help you determine where your price should be. Remember, a Realtor cannot give you the "appraised value" for your home, instead they can put together a Competitive Market Analysis report and give you a general idea as to the "fair market value" of your home. There is a BIG difference between the "appraised value" and the "fair market value." An appraised value is only a value and in no way guarantees that value is what you will be able to sell your home for. A fair market value or estimate on the other hand should tell you what you would be able to actually list and sell your home for. In the current "BUYERS MARKET" that we are experiencing, this can sometimes be very difficult.

As for the % of loss incurred year over year, that is a very generalized number and there is no set number that we can really go by. All I can say is that in my areas that I serve (generally Northeastern Baltimore County and all of Harford County), the market prices have definitely come down around the 10% range within the past year. However, they appear to be stabalizing recently and even starting to increase a bit (in certain price ranges). The price range that is getting the most activity in my areas right now is the $250,000 and under range. Generally speaking, in the Baltimore County & Harford County areas, this would basically buy you a middle of the road townhome, nice condo, or an older single family home that needs some updates.

You can certainly research your specific areas statistical data from http://www.mris.com and click on the market statistics page and then enter your zip code, county, etc..

Hope this helps a little.
Web Reference: http://www.isellmdhomes.com
0 votes Thank Flag Link Mon May 26, 2008
You'd need a CMA (competitive market analysis) to determine that. It's true that in many areas of the country property values have declined since 2006. In some areas, it's a lot more than 10%-15%. But I've seen postings here on Trulia from agents who say that, in the areas they work, prices have remained stable. Real estate values are very dependant on location, and more precisely what the demand is for a particular type of home in a particular price range in that location.
0 votes Thank Flag Link Mon May 26, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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