The other day I was looking at my houses value on my bank's website. They estimated that if I tried to sell my house, at best, I could get $110,000. That was disappointing since I owe $129,000. Yesterday, I got my property tax estimate for the year and they valued my house at $95,000. Now, I'm feeling really bummed. I was hoping I could sell my house in a few years and get a bigger one. But, if I do that, I'll probably take over $10,000 as a loss. Is there any hope for the future? What should the housing market look like in 5 years from now?
I don't think anyone can predict house values nowadays. I bought my house in April, and now, houses in the area are selling for twice what I paid for. I know that the price could change overnight and then the houses would be selling for half of what I paid. I try not to pay too much attention to the value right now, because it changes so quickly. Also, in my area, property tax estimates and real estate prices are two totally different things. If you want to get a rough "guesstimate" of what your house might go for, look at zillow or trulia, they should give you a half decent idea of what your home could sell for.
I completely agree. My property tax valuation is completely different than comparables in my area. I use Zillow as well and love this! I wouldn't worry to much if you have a few years. A lot can happen in a few years. My husband is in the construction business (Electrical). He does not work with housing but some contractors that he knows are talking more and more about the SLOWLY recovering housing market. I know this doesn't sound very hopeful but based on the past years of talk this is a vast improvement! I know it will not be an overnight turnaround but you are not to upside down and that few years could really bring a huge difference! It is a wait and see game right now in this economy. It could go either way. You may have to just wait it out, even though this is not what you want! Hoping for the best for you!
Your tax valuation has nothing to do with how much you can ask for the house. The comparable's are the best gauge to use for that.
Well it depends on many factors , but the thing to consider is your interest . You cannot do much about the value of your house other than spend more to keep it modern or make it bigger. So what is the other side of the equation how much you owe. Now I am not sure on your interest rate on your mortgage but I know mine for the first couple years of paying my house off you paying mainly interest . So if you want your house to be valued at more than what you owe you need to bring down how much you owe . So a solution is to pay more than required into your home loan . The more you add the quicker you pay it off the quicker the value of the house will be more than what you owe.
Your tax valuation does not represent fair market value. If you really want to know what your house is worth, hire an appraiser or ask a real estate agent what they would list it for. Home values are gauged on a number of different criteria and lenders will value things one way while an agent might value it another. it all just depends on the perspective used to value the property and the economic conditions when you have it valued.
No one knows if or when your house will be worth more. The sad part is that it will most then likely be worth less as the years go on.
