My Home Value Has Increased 20 Percent Again This Month!

By
Real Estate Agent with ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com NC License #115457

There was an article in the paper this past week that said home prices are up 5.2 percent over the same time last year. As soon as I read that my first thought was I’ll probably get another call or two from folks that are ready to sale. Then I thought, well I must be doing something right because I get these calls every month.

The problem is, people tend to misinterpret this to mean their home values are going up by this amount. This year over year increase however is starting to taper off a little.

 

Sure enough I did get “3” more calls this week and these numbers were a little more in line with the increase in values from a year ago. Up until now though, they have not been.

 

A 15% or 20% increase in home prices does not mean your home value has increased that much. Unfortunately I have lost a listing or two this year as my CMA was not enough to convince the sellers of this fact.

Last month the same news was, prices had increased 10% year over year for May. I did a CMA for a seller at $125,000 which is what he paid for it a mere year ago. The comps in his area showed very little increase at all in value.

 

In his eyes though his house was suddenly worth $137,500. I looked a week later and he had it listed for $145,000. I checked the other day and he had taken it off the market.

 

My thoughts were, I guess he had to figure it out on his own and waste some other poor Realtors money!

 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 07/12/2013 10:08 PM
  2. Praful Thakkar 07/14/2013 02:36 PM
  3. Gabe Sanders 07/19/2013 09:52 PM
Topic:
Home Selling

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Rainmaker
441,885
Linda De Fusco
The De Fusco TEAM Keller Williams Arizona Realty - Scottsdale, AZ
The Arizona Rainmaker

perceived truth...hearing what they want to hear...most often they don't want reality. Bet that customer calls you again when reality sets in.

Jul 15, 2013 05:34 AM #7
Rainer
292,121
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

funny post but so true, thanks everyone for your input

Jul 15, 2013 05:48 AM #8
Rainmaker
780,569
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Everyone wants to believe the good news that is reported. They don't want to hear that's it wrong or somehow doesn't apply to them.

Jul 15, 2013 05:52 AM #9
Rainer
115,735
Kelly Taylor
Keller Williams - Lakewood Ranch, FL

Agreed, I try very hard not to let it be my time or my money! Thanks for the post.

Jul 15, 2013 05:55 AM #10
Rainmaker
166,954
Marlene Dietrich
Marlene Dietrich Real Estate - Newport Beach, CA
Neighborhood Real Estate Specialist

All of that news information is regional and specific for each area. They are giving averages so each individual home is unique

Thanks

Jul 15, 2013 05:55 AM #11
Rainer
14,850
Johnnie Rosser
RE/MAX EXCEL - Logan, UT
RE/MAX Realtor

I love articles like the one you pointed out. Although not they don't always apply to the individual they help people start seeing real estate in a positive light. It slowly helps people that have been stung in the past few years change their minds about the long term benefit of owning real estate. While a pain in the butt in the  short term in the long run it will be good for everyone, Realtors, home owners, and the general overall economy.

 

 

Jul 15, 2013 05:59 AM #12
Rainmaker
85,191
Stacey Mayer
Snohomish-Homes.com - Everett, WA
Snohomish-Homes.com

Indeed, there are some places that are selling faster than a few years ago, and prices are stronger than during the peak of the foreclosed homes sales that were happening on those blocks.

We're also seeing areas where the prices are going down, if the property is farther from major employers. Outlying areas are sometimes taking a hit because of gas prices.

You can lead a horse to water, (buyer,) but you can't make them drink Koolaid!

Jul 15, 2013 06:02 AM #13
Rainmaker
186,097
Kevin Vitali
EXIT Realty Beatrice Associates - Middleton, MA
Helping Massachusetts Home Buyers and Home Sellers

The problem with the stats Mitch are it could be a broder regional area or even not in your part of the country.  Here in Massachusetts we have communities rising almost 10% but towns a few miles away can still be declining slightly. 

 

 

Jul 15, 2013 06:25 AM #14
Rainer
459,737
The Keith Kropp and Wayne Rogers Team
Michael Saunders & Company - Sarasota, FL
Nowhere But Here

Unfortunately, there are too many other internet sites out there that feed into this buyer mentality.  Take Zillow for example.  I can't tell you how many prospects I continue to counsel not to pay attention to Zillow and to stay off that site.  Most times they would rather believe what Zillow tells them. 

I signed up for monthly updates on the value of my home to check out Zillow.  I couldn't contain myself when the value of my home went up over $254,000 in just six months!  No wonder sellers want to believe!

There really is a sucker born every minute!

Jul 15, 2013 06:28 AM #15
Rainmaker
848,857
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Mitch we so agree!  Just because the low end listings are selling fast and for more, does not mean all homes have gone up that much!

Jul 15, 2013 06:59 AM #16
Rainmaker
1,641,120
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

To me, those news articles are misleading and dangerous. 

Many of the agents I work with live in "hot" areas where investors came in and snapped up everything at the low end. Thus, sales in the following months showed a higher median or average selling price. 

People are buying higher priced homes because the low priced homes are gone! 

I don't think anyone can say home values are up unless they've compared similar homes in similar neighborhoods - the actual selling price last year and the actual selling price this year. 

Jul 15, 2013 07:06 AM #17
Rainmaker
463,162
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com - Charlotte, NC
Certified Residential Specialist

Allen - I think as Realtors we are sometimes the worst

Bruce - can't tell you how many times I've heard those exact words

Lenn - we most certainly do but some think this is going to bounce right  back

Sharon - Dallas was very fortunate. Go Cowboys! (unless they are playing the Panthers!)

Gabe - Yes they will

Kimo - Yes he does! :-)

Linda - With some I don't think reality ever sets in

Ron - Absolutely

Jill - How many times have we heard "well, my house...."

Kelly - Same here!

Marlene - Right! CMA's don't lie (if done correctly that is)

Johnnie - I'm all for positive news

Stacey - Maybe if we spike the Koolaide that would help!

Kevin - I've seen that in our overall market area as well

Keith - I'm with ya Keith. People love Zillow when it works for them!

Bob - That's right, and they have not

Marte - Investors are buying homes like hotcakes in our market and that worries me a little

 

Jul 15, 2013 07:27 AM #18
Rainmaker
1,431,914
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Around here they are shooting up that much, but it is tapering off some.  

Jul 15, 2013 08:10 AM #19
Rainer
140,465
Keith Whited
RE/MAX Gateway - Alexandria, VA

Unfortunate fact of the business - - too many folks will all too often interpret 'statistics' to best suit what they believe will benefit them.

Jul 15, 2013 10:58 AM #20
Rainmaker
686,859
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
Right now it's a sellers market if priced right I have several sellers sitting on the fence, to sell or wait. I tell them, unless the price is right. It helps if the market is tight and your property is in a desirable area, then may you can sell slightly higher.
Jul 15, 2013 11:09 AM #21
Rainer
353,593
Andrea HoffDomin
Florida Dream Homes Realty - Fort Lauderdale, FL
- in Real Estate always on your side!

Mitch, you are so right. Seller read some news and attach these numbers to their house without understanding what some of the numbers really mean. It is very sad many seller do not understand how the business works and that every house is special and has it own number. They do not want to listen to recommendation which are in their best interest.

Jul 15, 2013 11:18 AM #22
Rainer
553,200
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Mitch,

You make your money, when you buy. If you pay above market, you cannot expect to sell for a boatload more only a year later. Sometimes, it is worth to overpay a little to get the ideal location for yourself, but it will take longer to make a mint, when selling. If you plan to sell soon, use a very sharp pencil, when buying.

Jul 15, 2013 01:15 PM #23
Ambassador
2,899,203
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Mitch, Often I'm not sure sellers totally get that market values vary tremendously.  When we do a market report, it's for a larger grouping of houses, a school zone or zip code, NOT specific to a certain home on a certain street, and that is where the true home value is determined.  Market reports are great for overall trending, but that's their limit.

Jul 15, 2013 08:23 PM #24
Rainmaker
463,162
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com - Charlotte, NC
Certified Residential Specialist

Gene - Tapering off is a good thing

Keith - Guess that's in part what keeps Zillow in business :-)

Hella - We are seeing that here, but running into appraisal issues

Andrea - If we could just somehow get them to listen to us!

Dorte - That is SO true!

Liz & Bill - You are so right, most do not. 

Thanks to everyone for your comments! I'm honored to have my third featured post here!!

Jul 16, 2013 10:12 AM #25
Rainmaker
513,021
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

"Armchair" realtors. That's what I call them. They think they have it ALL figured out. They do come back to reality though.

Jul 22, 2013 02:43 AM #26
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Rainmaker
463,162

Mitch Muller - Charlotte NC Real Estate

Certified Residential Specialist
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