How Much Is Your Home Worth?

H is for home value, in the Alphabet Game, bankruptcy experts across the country blog on different topics.

I always ask potential clients this question, how much is your home worth?, I mean, really, and the response frequently is something like:  well, it is worth $200,000, but right now, I can only get maybe $160,000 for it.”

So, what do we mean by “worth”?

There are state tax valuations, which are normally not worth the paper they are written on, and worth even less these days.

How about that last bank appraisal?

The one you did for the re-finance back in 2008 or earlier?

Uh, no good.

Most appraisals during those peak bubble  years were bogus, done to hit a number that would allow the mortgage to go through and the mortgage broker to take a commission.

What I mean is, what would a willing buyer pay, right now, as is, no painting or other fix up.  Your best guess as to the actual market price, usually based on sales of similar homes close by.  Almost everyone I talk to has a foreclosed home, or more than one, for sale nearby.

If your neighbor’s house is basically the same as yours, maybe a little better, and is for sale for $150,000, that means, it is worth less than that, or someone would have purchased it at that price.  So, your home is also worth less than that.

Doug wrote about renting v. buying a home this week, and I recommend everyone do this.

If you are in a home now worth less than what is owed, and have trouble making the payments, you need to figure out the answer to our question:  How much is your home worth?

Most of us, due to wishful thinking, I suppose, overestimate the value of our home.

Get a free estimate from a local realtor, but, get a good answer on the value.

Don’t assume prices are going to rebound soon, either.

I have seen estimates of another 20% decline in home prices over the next year.

You cannot do intelligent financial planning without knowing stuff like this.

image credit:  Dreamstime


Hearing    Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell

Bankruptcy Hijacking Los Angeles attorney Christine Wilton
Homeowner’s Association Dues    Marin County Bankruptcy Attorney, Catherine Eranthe
Household    New York Bankruptcy Lawyer, Jay S. Fleischman
House    Northern California Bankruptcy Lawyer, Cathy Moran
Homestead    Colorado Springs Bankruptcy Lawyer Bob Doig
House    Los Angeles Bankruptcy Attorney, Mark J. Markus
Household Size    Hilo Bankruptcy Attorney, Stuart T. Ing
Honesty    Cleveland Area Bankruptcy Lawyer, Bill Balena
Honesty (and Fraud Avoidance)    Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
Harassment by Creditors    Downriver, Michigan Bankruptcy Attorney, Christopher McAvoy

Household Income Livonia MI bankruptcy attorney

Digiprove sealCopyright secured by Digiprove © 2016-2017 Kurt O'Keefe
If you enjoyed this post, make sure you subscribe to my RSS feed!

12 Responses to How Much Is Your Home Worth?

  1. Kurt,

    Nice job. You are spot on. I have had many similar discussions with my clients about the financial impact of retaining their home when it is currently upside down. Does not make sense to modify a loan by extending the term another 10 years. Those who have refinanced within the past 10 years are still looking at a 30 year mortgage on an overvalued piece of real estate. It will take more than 20 years at regular payments to probably break even. That is a long time.

    I hate to disregard “hope” but these are major investments. You need to be very realistic. If you are filing bankruptcy why not take advantage of its many benefits – like discharge of mortgage debt.

  2. The other piece of the puzzle is how the cost of living in the home compares to renting. If the cost of living in the home is not significantly more than the cost of renting, then there is no harm in staying put. Just so long as the “homeowner” understands that the real estate is housing, not an investment on which they can retire.

  3. And no doubt you get the same sort of dialogue:

    It’s worth $200K.

    I see, could you sell it today for that?

    Oh no, today I could only get $125K. But it’s “worth” more…


  4. Thought about selling our house over a year ago. The realtor advised a private appraiser of old homes look at our 1800 century farmhouse. The appraiser loved the property, house, charm, couldn’t stop talking about the beauty of it. We were shocked when we received the appraisal and the low figure on it. We thought the house was worth $100,000s more
    : ( It was a real wake up call to how far the market has fallen in NY.

  5. Here at Arizona Bankruptcy Now, we specialize in Arizona chapter 13 and chapter 11. Being Arizona bankruptcy lawyers, we are to assist you in Arizona bank foreclosure and Arizona judgments.

  6. An intriguing discussion is worth comment. I do think
    that you need to write more on this issue, it may not be a
    taboo matter but typically folks don’t speak about such issues. To the next! All the best!!

  7. The capacities of 8, 12, roofing baltimore maryland 16,
    and 20 quarts ensure you always have the right size pot for stews, soups, chili, and
    more. Hoffritz 4 Piece Nesting Aluminum Stockpot Set with
    Lids – This Hoffritz 4 Piece Nesting Aluminum Stockpot Set
    is perfect for preparing big family dinners, holiday meals,
    and large cookouts. The capacities of 8, 12, 16, and 20
    quarts ensure you always have the right size pot for stews, soups, chili, and more.

  8. This really is an incredible website, thank you in this. I would personally to be able to google for a lot of several hours to find the following get.

    My partner and i hate as soon as every time My spouse and i the search engines regarding information so
    that you can analyze I really typically discover ineffective articles and other content and a great deal of junk e-mail.

    An individual apparently consider care connected with the complete junk mail and also keep your web site
    fresh as well as top quality. Do you really possess strategies for my
    personal site?

  9. Woah this web site is actually magnificent i like mastering the articles you write. Sustain the nice art! You know, plenty of men and women are looking all over due to this facts, you could assistance these individuals tremendously.

  10. what does range mean in math terms for kids