I bought my house 3 years ago when the market was at it's highest, and need to sell. How much of a loss can I expect?

Asked by Shseller, Sugar Hill, GA Tue Dec 29, 2009

I have added a fence, laminate flooring, tiled the kitchen, and added crown molding.

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Chuck Green, Agent, Norcross, GA
Wed Dec 30, 2009
BEST ANSWER
Fence, Laminate and Tile Flooring, and Crown molding can add perceived value to a potential buyer. It does not though add actual value to your home. In some cases it could even devalue your home in perceived value to a potential buyer. Depending on your price point you may have a flood of homes to compete with both new and resale. If you are above 180k absolutely as there is standing inventory running from 7.7 months of supply up to 42 months. If are below 180k the market is fairly balanced at this time. Although a quick sale will dictate pricing your home at or below current market value.

Chuck
Web Reference:  http://chuckgreen.com
0 votes
Sandra Robin…, Agent, Grayson, GA
Sat Sep 7, 2013
I don't know if you are still interested in selling your home or it is already sold; however, I can prepare a CMA (evaluation of home value) for FREE. Most agents are capable of preparing this report.

Let me know if you could use my assistance.

Sandra Robinson
Keller Williams Realty
404-644-2688
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Dallas Texas, Agent, Dallas, TN
Wed Dec 30, 2009
Contact a Realtor who can comp your property, determine mortgage pay off, no one can determine the amount of loss till entire file is reviewed.
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Hank Miller, Agent, Alpharetta, GA
Wed Dec 30, 2009
I'll say it again - get an appraisal. As far as the upgrades, they may add appeal but remember that the physical characteristics of the home are what the comps will be based upon. Remember the definition of a comp - "as reasonable alternative purchase to the subject". Crown, tiled floor, laminate, fence......nice but finctionally they don't make a difference. The same home design with vinyl in the kitchen works as well as one with tile or hardwood. You can argue increased appeal but I'd challenge anyone to legitimately support an adjustment for that - and I've been appraising 20 years.

Also remember that in your area there is a flood of standing inventory - you will be competing with a significant number of sellers, including new homes. Price drives the train and buyers in areas like yours now that so you should start aggressive if the objective is to sell.

Hank
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Stephanie Mc…, Agent, Canton, GA
Wed Dec 30, 2009
Definitely need an agent inside your home with recent comparable sales in the area in hand. And, by the way, the term "recent comps" has changed within the last year or so - "recent" is now only going back about 3 months.
Good luck Shseller.
Web Reference:  http://www.mysouthhomes.com
0 votes
Karsten Torch, , Grayson, GA
Tue Dec 29, 2009
Hello.

You're going to get the same answer from everybody, but it can't be repeated enough. Get a realtor to come out, preferably 2 or 3, or even more, and see what they say. And dont' pick an agent just because they give you the highest estimate. Because like Hank said in the beginning, you'll just wind up lowering your price, probably repeatedly, and most likely wind up selling for less than you would have otherwise.

Based on the neighborhood, you could be anywhere from 50-80% of your original purchase price. The fence, flooring, and crown molding will help, but it depends on what kind of fence as well as the size of the yard fenced, what kind of tile you installed, as well as where and what kind of crown molding. And things like crown molding may not actually add to the value, but may help you sell faster, which equates to less money out of your pocket in holding costs while marketing the property.

Again, get comparables. Sold comparables. The current for-sale list really doesn't tell you much. An actual appraisal would be better.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Dec 29, 2009
Why not contact a few local Realty offices, interview a couple of agents and choose the one you like best. You really need to know your neighborhood market, especially recently closed similar properties in the immediate area and their actual sale price--Without that information it's tough to determine how much of a loss there may be on your property. When selling, always remember to have your house, neat, clean and clutter free, show it well.

Anna
0 votes
Chuck Green, Agent, Norcross, GA
Tue Dec 29, 2009
Dear Shseller....

The answer lies in the condition of your home, how it compares to others sold in your area during the last three to four months, timeframe in which you need to have the home sold within, along with the style of home and the location. If you would like an in depth answer contact your realtor and a few of us to meet with you to get a true picture of the value. Be aware that you will be at the low end of market value and probably below market value if you need to sell very quickly.

Chuck Green, Realtor
Keller Williams Realty
770-714-7077 (c)
678-578-2788 (vm)
chuckgreen@kw.com
Web Reference:  http://chuckgreen.com
0 votes
James Dudley, Agent, Suwanee, GA
Tue Dec 29, 2009
Shseller,

I'm a local agent and actually live in Sugar Hill myself. I would be happy to work up a estimated sales price for you.

Feel free to contact me if I can help.
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Joshua Jarvis, Agent, Duluth, GA
Tue Dec 29, 2009
Based on the vague information you gave us, You're likely looking at a 20 to 30% loss if it was truly at the height of the market AND you bought something that wasn't a good deal then.

Your upgrades are nice but chances are they will help your home sell faster, but not necessarily for more money.
0 votes
, ,
Tue Dec 29, 2009
I agree with the others - this is a question best directed towards a local real estate expert. Although if you "need" to sell, you're probably not going to get an answer you like. Best of luck
0 votes
Judy Wittenb…, Agent, Suwanee, GA
Tue Dec 29, 2009
It really comes down to the actual neighborhood and what has sold in that neiigborhood. Unfortunately the money you put into the house doesn't necessarily raise the value. It really will be based on comparables sold. Without knowing more details it will be hard for any Realtor to answer that question. I recommend that you ask a Realtor for some help.

Judy
0 votes
Richard Leci…, , Tucson, AZ
Tue Dec 29, 2009
This question cannt be answered using percentages. Prices changes are different all over the country as well as locally. Each neighborhood is different. I suggest you talk with a realtor or two in your area and have thme run some current comps.
0 votes
Pat Moyer, , West Chester, PA
Tue Dec 29, 2009
Start interviewing Realtors. Specifically ask them to research market statistics for your neighborhood/area. Then let them see how your home compares to recent solds and go from there. The "amount of loss" will depend on factors we can't identify without doing the research and knowing your market.
Web Reference:  http://www.MainLineWest.com
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Bill Eckler, Agent, Venice, FL
Tue Dec 29, 2009
Shseller,

With the limited information provided it would be most difficult to provide you with accurate information. The real estate market varies from one location to another even within the same community.

To provide a generalized number that probably would no take into consideration the activity of the local market would be unfair to both you and the market.

As Hank indicated, you need to find an agent that will give you the "real scoop" on the current value for your home. You can expect it to be considerable lower than when you purchased 3 years ago.

Our recommendation is to invest in having an appraisal done and market it as recently appraised and being offered at or slightly below appraised value.

Good luck
The Eckler Team
0 votes
Hank Miller, Agent, Alpharetta, GA
Tue Dec 29, 2009
The easiest and most accurate way to get an idea of current market value is to get an appraisal. Agents may look to sugarcoat things in an attempt to become your agent. After the home sits they'll hit you up with "the market is telling us we need to drop price" song. Few really understand how to comp homes to closed sales and most will look to current listings - not reflective of the market. Appraisers deal only with closed sales and look at things from the lender's perspective - and that will have to happen anyway, so you might as well see the same picture the buyer will.

Hank
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