WHAT IS YOUR HOUSE REALLY WORTH?                                  

 The down turn in the Real Estate market has left many home owners contemplating selling their homes in St. Cloud Florida and parts of Osceola County but wondering what the house may be worth in today's market.  One thing about Real Estate, it is always changing.  Over the past year, values have inched up.  Sales are being achieved and although still below what homes sold for at the peak of the market boom, the value has increased in year over year comparisons.  

The price spike in 2006 was an anomaly. Using it as a standard would be an unfair comparison during the buying frenzy and times of hyper inflated home values. That does not stop some "experts" from doing it however.  There were very specific market conditions in place at that time which lead to the so called bubble. What created it was a shortage of available homes, in St.Cloud, Florida driving the price up. As builders rushed into production thorought Osceola County in Florida the number of available homes swelled and prices skyrocketed during a feeding frenzy of home buying until it eventually and predictably collapsed under the weight of over pricing.  

In 2007 the market stalled completely.  No one was buying.  Interest rates and adjustable rate mortgages began to reset. putting pressure on home owners, compounded with rising Property taxes, Insurance premiums, and resetting mortgages the financial burden for some became an untenable situation and subsequently they were unable to continue to make payments.  The epicdemic spread feverishly as home values continued to plummet and the buyer pool all but vanished.  

In 2008 the number of foreclosures continued to rise- the economy overall was in decline and the values of overpriced property continued their downward spiral. As banks seized property on defaulted mortgages, the amount of inventory they held began to dwell and toxic loans had to be liquidated.  Many of the homes banks foreclosed on were in dire need of repair.  The banks found themselves in the position f the home owners they had foreclosed on who tried to sell prior to the foreclosure. As a result, they lowered prices to achieve sales.  

 2009  Prices continued to plummet and banks reduced inventory home prices even further to achieve sales. Resetting the value in St. Cloud, Florida back to pre-boom levels. In the 1990's homes averages in the mid $30-50,000 today there are bank owned properties still in that range and they are selling but there are also higher priced achieving sales int he St. Cloud area.  Home buyers, foreign buyers and second home buyers are returning to St. Cloud, Florida and coming back into the Real Estate market with the initial thought of snagging a distressed property as an investment opportunity but have been discouraged with some of the properties, combined with long delays in short sale negotiations and poor condition of the foreclosed homes and the allure of a "bargain" quickly faded when many are in need of extensive and costly repairs. Repairs the lenders will not make. These "As-Is" properties come with no guarantee or warrantee.  While some only needed paint and carpeting many needed much more such as entire kitchens or bathrooms making them ineligible for FHA/VA financing and appraisals affecting conventional loans will not validate asking or offering prices.

 The shift in consumer demand transformed from "bargains" to better quality homes needing less work to restore and  priced fairly. Homes sales rose approximately six percent month over month for the past five consecutive months. Consumers responded competing for prime properties with multiple offers.  

The drawback retarding another spike in homes sales comes from recent changes in appraisal practices and tighter lending requirements.  Appraisers now must conform to the Home Valuation Code of Conduct and as a result of a limited number of out of area appraisers prices are not escalating as they may have previously to the changes in appraisal practices. 

Methodology  does not exclude distress sales from the available comparable properties as a result, the overall evaluation of price can be reduced.   If you had your home appraised a year ago- it is no longer a valid proof of what it is worth as value is affected to a great extent by recent sales.  Over improvements rarely factor in to what the home may be worth in today's market essentially eliminating recapture value of the investment.  (Even foreclosures have granite counter tops for example)  

The best way to determine if now is the right time to consider selling your home and what your home is currently worth is to consult a local Real Estate professional or have a current appraisal performed. Appraisals range from $200-$350 dollars.    

How does your home stack up?