Post # 1
I bought my home only a year ago and got a value estimate in the mail today showing it is estimated to be worth $20,000 less than I paid. It is really depressing 🙁 I did get some tax credits but still those don’t make up for it. Since I had a low downpayment I am now underwate on it. Anyone else in this situation? My husband and I consider this to be our starter home since its only 2 bedrooms but given the way things are I can’t see us buying anything else until it at least goes back up to what we paid.
Anyone else in this situation? Feeling bummed out, like we should have waited until now to buy. 🙁
Post # 3
You probably got the property tax statement, which isn’t the true value of your home. Mine is currently $208k, but my house is worth $230k. My mortgage guy explained it to me before, but I forgot what the basis is for the difference. I think by the time you are going to buy again, prices should go up
Post # 4
We’re not necessarily underwater, but if we sold our condo today, it would likely be for about $40,000 less than we paid. After realtor’s fees and taxes, we’d lose about $60,000. We had a downpayment, and have paid it down in the last couple years enough that we would walk away about “even”, but with nothing for our next downpayment.
Post # 5
Honestly, housing should be a place to live, not an investment in this market. Think of it as having a place you like to live that you also might be able to build equity in IF you hang in over the long term.
You would likely have to delay buying beyond even today to not lose money. Would you have been willing to wait that long?
Post # 6
Would you lose more than if you had rented during this time? I think that’s the number you should really be looking at, if you are looking at your home as an investment.
Definitely a lesson for not just getting into any old “starter home” that doesn’t match your long term needs. You have no control over what the market can do – the best thing you could do for yourselves is wait until you have a large (20+%) down payment on a home that you can see yourselves living in long term, if not forever. That way, if you need to stay, you won’t be stuck in a house that is too small!
Post # 7
Yeah we also would have lost a ton of money renting as well. Our mortgage costs about what it would cost to rent our property. I don’t really regret buying a starter home since our monthly payments are a lot less than a non-starter home would be and it works for now, I guess I just wish he had waited longer and got a lower price. Possibly buying a 3 bedroom home would have been smarter but then it also would have cost more and right now we don’t need a 3rd bedroom.
I guess I just feel like we overpaid somehow, even though we did pay what the market value was when we bought it. We didn’t expect it would de-value so much in just a year.
Post # 8
When I look up my home value on zillow.com, it fluctuates all the time. Some days it is supposedly worth less than what we paid, some days it’s worth 30K more than we paid. I wouldn’t trust any estimate where the person hasn’t been inside the house. And I focus on doing both big repairs and smaller stuff (painting, light fixtures) than will increase value to a future buyer when we do decide to sell. That kind of stuff won’t be taken into account unless you get a formal appraisal or a broker price opinion, so I don’t worry too much about other estimates.
Post # 9
There is no way to “time” the housing market. It could have very easily gone up the past year and you would have been saying “I wish we would have bought last year!” If you’re living in your home and enjoying it, the value on paper doesn’t really matter. Hopefully when you go to sell it, the value will have risen. If property values are still low when you sell, that means that your next house will be less expensive as well.
Example: My parents sold our family house in 2005 at the top of the market and bought a condo. The value of their condo is now half of what they paid for it, BUT if they would have waited until now to sell our house, they would have sold it for half of what they got. The market works both ways….