Case Study – When The Value You Want Out Of Your Home Isn’t The Value of Your Home.
Posted February 4th, 2016 by Clarissa Gregg

Case Study – When The Value You Want Out Of Your Home Isn’t The Value of Your Home.
We assisted a woman with gathering information on her condo sale by coordinating meetings with two real estate agents through our program. Her property was an updated one bedroom in a condominium community with one and two bedroom homes. The seller felt the upgrades put her property in the price range of the two bedroom homes in the area, though the one bedroom properties were selling for considerably less. As a result, she wasn’t pleased with the analysis’ provided by the agents she met and the pricing recommended through the program. She decided to list the property for more than 12% over the pricing we recommended. The price was reduced once, though still asking more than our program pricing, and the condo came off the market after 6 months without selling.
Now, for many people, this means the end of a potentially very necessary move to retirement living. Most people need the equity out of their home sale to make the transition to a retirement community and so, end up indefinitely postponing their move when they don’t sell their current residence.
For others, including the seller of the condo mentioned above, she still made the move, but is left with a secondary property. That includes, as you might imagine, some costs, including monthly association fees, taxes, utility costs, maintenance expenses, and possibly a mortgage payment. Added together over several months, those expenses will likely add up to more than the difference in price between the value she wanted out of her home and the true current market value. Carrying the property also adds stress and can affect health conditions.
While we all WANT the most value out of a property possible, what we want doesn’t always coincide with the current market conditions. It can be a tough pill to swallow, but as long as you can financially afford to move despite the lower value, it makes sense to move forward and avoid holding onto a property you no longer need. Who knows when the value of your home will actually meet with your expectations? It could be several years and do you have that time to spare when you want, or perhaps need, to make a move now?

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