How Do I Know The Resale Value Of My Home?

How do I know the resale value of my home? There are several ways to determine the resale value of your home. The only way that you can tell is by first of all talking to the neighbors. Second, see how desirable...

The only way that you can tell is by first of all talking to the neighbors. Second, see how desirable it is. The only way that we can advise people is to take a look at the last five years or the historical data. Generally most of the recording offices have on the Internet what people have paid for homes. You can get the county records of what people have paid for their homes as far as three to five years and just see how the value has changed in that neighborhood. You can only look at the past and hope that the future will continue on that trend.

I was an urban pioneer. I went into a neighborhood in Philadelphia back in the 70s where out of 48 houses, more than the third of them were empty and people like me started buying and fixing them. I brought my house to code in a year and we did a lot of things on the block. It was an interesting experience, but that was a place where I think we did save it. We saved it from being a bombed out neighborhood. We bought it through HUD and then fixed it up and then I was able to sell it on a regular mortgage. If people live in the city, they might be looking at fringe areas that are what they called gentrifications; where they are coming up in value. Right now I think people really ought to take a serious look at moving close to the city or closer to rail lines or where there is alternative transportation to work because of the price of gasoline. I think there is going to be a growing trend towards locating in urban areas where you don't have to depend on your cars much as you had to before. So one of the things that I am suggesting to people right now is when they look at financing, they might consider looking at government related loans, as in VA or FHA loans. And the reason for that is if they are going to resell the property in five years, it's possible that the interest rates have gone up. I was in real estate in the early 80s when the interest rates one weekend went from 10% to 16% which almost doubled people's monthly payments. And I stayed in real estate longer than most of my colleagues because all of my business in the 70s had been VA and FHA government related loans. Those loans were assumable by the new buyers at that low interest rate that they had. Whereas if we had to start from scratch on a home that didn't have an assumable loan, then the interest rate for the buyer was 16% at the present time both the VA and FHA loans are not easily assumed. However, if we have an economic crisis and the interest rates go up and the federal government needs to stimulate the housing industry, it would have some leeway on the VA and FHA loans to possibly allow them to be assumed at a lower interest rate. So that's something that a savvy buyer would look at for possible resale down the road.

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