Sometimes I feel like the Grinch that stole Christmas. It's especially true when I have to tell home sellers that their home is not worth nearly as much as they thought it was.
I'm a homeowner, myself, who bought in 2007 so I feel the sting. Most people who purchased homes in Bucks County since 2004 are not going to break even if they sell soon. Sellers who have spent money on expensive upgrades that are not generally appealing to sellers may also be in the hole.
Last week I met with a nice home owner who had built his home and has lived in it for over forty years. There were some expensive features in his home, but it was in a flood plain and had flooded in the past. With so many houses to choose from, I was pretty sure his property would not sell easily. When I told him
what I thought the market value was, he responded. "Honey, if you think I would sell it for that you are crazy." While I felt bad for him and could see many positives in his home, I think he was viewing his home through rose colored glasses. Consequently, I referred him to a home appraiser so he could seek a comprehensive evaluation of his home
We in Bucks County are more fortunate than homeowners in many parts of the country. On average, home sale prices here have decreased about 21% off their highs; whereas, homes in many areas of the country have had a 50% decrease in value. The fact is, homes were never worth what they were selling for in 2006. This isn't much of a consolation to homeowners that will be selling their homes at a loss, but they need to be realistic about market facts if they really want to sell. Now that the boom is over, homes should be viewed as domiciles, rather than as a key element of retirement plans.
The good news is that homes in Bucks County are selling if they are priced correctly and marketed aggressively.
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