The value of a property can go down if a natural disaster occurs, such as a flood. Certain events such as earthquakes or fires can also cause the value of a property to drop. In addition, the value of a property can go down if it is poorly maintained.
We Buy Houses can answer any questions you have at 817.438.0098.
Summary:
Increasing Mortgage Rates Will Affect You
Disasters in the Community
How to Fix a Foreclosure/Short Sale
Increasing Mortgage Rates Will Affect You
A low mortgage interest rate makes it easier for buyers to afford a bigger home. As a result, their monthly mortgage payments are lower, and they pay less over the life of the loan.
As interest rates rise, housing prices will fall. This is because buyers will have to pay more interest and spend more on the purchase price over the life of the loan.
Higher interest rates can affect the home selling price. For example, the home you sell might be less valuable than it was before the interest rates increased. However, before the interest rates rose, your home may have been in the price range of 30 prospective buyers. With the higher rates, this number may have decreased to only 10 prospective buyers.
You may find it challenging to sell your home at the current list price. However, you may need to lower your cost to appeal to more buyers.
Disasters in the community can drive property value down
Natural disasters can wipe out entire communities and affect your property’s value. Examples of natural disasters that can affect the value of your property are hurricanes, tornadoes, wildfires, earthquakes, tsunamis, mudslides, and floods.
The F-5 tornado that struck Joplin, Missouri, in 2011 killed 158 people. It was the most powerful and deadliest tornado in the US in almost 100 years. The damage bill for this tornado was around $2.8 billion. The 2005 Hurricane Katrina killed nearly 2000 people and caused around $81 billion in damage. The Hurricane of 1900 killed about 6500 people.
A natural disaster can hit without warning and have a devastating effect on the value of homes in an area. For this reason, ensuring you are not overpaying for your home is essential.
Many factors influence the value of a property. For example, flood zones can be a huge factor in the value of a home. However, this is only one factor. When buying your home, you should look at several factors, such as the neighborhood, schools, commute times, and the proximity of your future workplace. This may mean that your home is worth less than you initially thought.
A hurricane or tornado can cause much damage to a house, and you may find it hard to get insurance to cover the damage. However, if you do have insurance, you might be able to apply for FEMA aid, but this is often not enough to cover the damage.
Storms are a constant danger. They can cause damage to your property and cause the property to not be sold. Therefore, you must be vigilant to keep your property in good condition when you can.
How to Fix a Foreclosure/Short Sale
The foreclosures and short sales in your neighborhood will lower the value of your property. The real estate market is a dynamic one, and the market changes over time. For example, a property once worth $100,000 may be worth only $80,000 today.
Below is an example of how a property’s foreclosure can affect a home’s value. If you sold a foreclosed home for $200,000, this could reduce the price of a comparable property by $100,000. This foreclosure may significantly reduce the value of your home.
When selling a house, you want to get the most you can for your home. However, this will not be possible if the area suffers from high foreclosures. This will decrease the value of homes on the block, and the entire area will depreciate.
Buying a house next to a home that has just been foreclosed on can be risky. As a prospective buyer, you would want to know about the property and the foreclosed house’s history. If you are interested in buying, you will try to negotiate the property value price down.
Conclusion: It is wise to understand property value
If you want to sell your house fast, you can ask We Buy Homes any questions that come to mind. We want to ensure our community can make an educated decision before selling their home or property. Contact us anytime for assistance.
When the time comes to sell your house, you have one of two options. You could sell via a real estate agent, who will require fees and commissions from the sale. Or, you could call We Buy Houses, where we offer you a fair price for your house with no hidden fees.