IS THERE REALLY A BELOW MARKET VALUE HOME?
Update February 2, 2016 I have a problem with real estate agents who tell me that a house for sale
is selling for "below market value." My problem with that statement is that the actual market value for any home
isn't known until the home actually sells and the checks change hands. Any price before that moment is only an estimate. To
say that a home is priced at "below market value" is best a guess.
The other day a Realtor
friend showed me photos of a house with a master bathroom in need of remodeling and upgrades. He said the house was priced
"below market value" because of the need for the remodeling. I said to him it is wrong to say the home was priced
at "below market value" becuase that particular home, with that bathroom in need of remodeling, had its own market
value and could not be priced the way other houses in the neighborhood could be priced.
every home is unique and every home has its own market value. Even identical homes on the same block would not necessarily
have the same market value if one was painted blue and one was painted green, or if one was in the middle of the block while
one was on the corner.
This is why I reject phrases and descriptions that include "below
market value." All homes have a unique market value and to say that one is priced lower than others only means that its
market value is not the same market value that another home has.
WHAT IS YOUR HOME REALLY WORTH WHEN YOU WANT TO SELL IT?
Update January 18, 2016 A friend of mine pointed out to me that there are some big
differences between what several online real estate websites say homes are worth in hisneighborhood. Another friend who
was in the discussion said the best way to determine the market value is to ask a real estate professional. I disagreed
with the idea of depending on a real estate professional. Unfortunately anyone including a real estate professional can give
you a "market value" for your home. But that doesn't mean the real estate professional's estimate is what the property
will sell for.
A bitter fact is any real estate professional can tell you that your home is worth
a certain price to lure you into giving them the sales listing. The fact is market values are set only when the checks change
hands and the deed is delivered. Yesterday's selling price is not tomorrow's selling price.
it's happened too many times: a real estate agent says "your home should sell for XXX dollars..." and three months
later the agent is telling you to accept a lower bid because that's all you're going to get.
you should ask a real estate professional for guidance on pricing and you should check what websites have for prices in the
area. But these are estimates at best of what will happen.
WHAT ABOUT FOREIGN CURRENCY TRANSACTIONS?
Update January 2, 2018 If you're living abroad when you sell your home and need to exchange these dollars into foreign
currency like Euro, or British Pound, you will be facing the uncertainty of the fluctuations of the currency markets. By the
time you actually your home and the papers have been signed and the checks exchanged, currencies can heavily fluctuate and
directly affect the bottom line of your sale. This is why you should consider those specialized companies that can help minimize
the uncertainty of currency exchange by fixing a future rate today. For more information view World First Currency Transfer, a FinCEN licensed operator.