Why is my Perry Georgia house worth less than I owe.
Why would your Perry house be worth less than you owe? There are a few reasons. There are also things you can do, if you choose to, to help your situation with your Perry house.
The value of your Perry (or any) house changes every month. It is called market value. This is determined by the average sales of similar house in your area over the last few months. If new home buyers are paying more for similar houses in your area, the value of your house also goes up, and vice versa.
If you bought your house recently and have not had time to pay down your mortgage or bought your house at the top of the market, you could be “upside down” (as we call it).
All thru 2020, nearing 2021, home values in Perry Georgia are high due to covid-19. This is reducing the number of willing sellers, causing a shortage of houses for sale and keeping demand up. Once the corona pandemic subsides and business gets back to normal, available houses may go up and create a flood of inventory.
More sellers than buyers in Perry and surrounding areas will cause prices to drop. If you bought your house in the last two years, the value of your house could drop below the balance on your mortgage.
Is your Perry house really worth less?
Before you go into a panic about your house being “upside down”, get an appraisal of your house. This with determine what the current value of your house is and if there is cause for concern. Online listing websites are notoriously inaccurate for gauging the value of houses. Don’t go by them if you need real and accurate numbers.
Is there a problem with your Perry house being worth less than you owe?
Perry Georgia is full of our proud military. Unfortunately, Part of the job of our military troops is to move every few years. This will force military homeowners to sell their house during a drop in the market, when the price of their house is less than they owe.
If you don’t want to sell your Perry house, don’t worry. The market value of your house is not a problem unless you have to sell your house. Selling a house is similar to selling investment stocks, you don’t lock in a gain or loss until you sell.
If I do need to sell my house while it’s upside down, what do I do?
Sell your house outright
Selling your house owing more than its worth can be done. First choice that most realtors will tell you is to list your house on the MLS and pay the difference at closing. This will get very expensive. Buyers can demand (since it is probably in a buyers’ market) that you pay closing. You will also have to pay off the remaining balance on the mortgage and the realtor’s commission of 6% of the sales price.
Sell your house with owner financing
Next option to selling your Perry house is to sell it with some kind of owner financing. For every buyer you get with a bank pre-approval letter, there are three buyers that can afford to buy your house but can’t qualify for a loan. These business professionals and sole proprietors are willing to pay more for your house if you will be the bank (We buy houses like this too).
Another alternative to selling your upside down house is renting. Renting your house for a few years is a great way to get someone else to pay your mortgage down. This can bridge the gap until the next climb in the housing market so you can sell your house without taking a loss.
Renting your house instead of selling may not cover the entire mortgage payment, but you will lose less than selling outright. It would be best to have a professional land lording services to manage the rental property for you.
If you need any help deciding your next move, don’t hesitate to contact us.