Does selling a home cheap decrease it’s value and how long until lost value is regained?
I live in FL my home was worth around $310 K then my father sold it to me for $225 K now it’s worth $232 K. Am I going to have issues when selling, say within the next 5 years? I don’t want to see other homes in my area selling for anywhere from $340 K to $400 K but I can only get, say 280 for mine then I won’t make money on the sale, this is my main worry. Did buying cheap from my father screw me over in the long run? Or can I sell down the road for a price similar to other homes in my area?
- EvaLv 73 weeks ago
It depends more on the condition of your home in comparison to others than the price you paid for it. Are you keeping up on maintenance and has it been updated? How attractive is it from the street?
- STEPHENLv 73 weeks ago
Anything, houses included, is only worth what someone is willing to pay for it.
The price you paid your father has nothing to do with market value.
- babyboomer1001Lv 73 weeks ago
Buying it cheap from your father did NOTHING of the sort. That would have absolutely no effect on a Certified Real Estate Appraiser's appraisal. If the house lost value, then there was either a housing crash or it was left to crumble in disrepair.Source(s): Certified Paralegal, with 25+ years' experience & with Real Estate law experience.
- JudyLv 73 weeks ago
When you go to sell, the recent sale prices of comparable homes in your area, and condition of your home, will determine what you can get, not what you paid for it. If prices overall go down, and it sounds like they have, it might or might not ever recover to it's previous worth. Where are you getting these "it's worth" numbers anyway? Are you confusing appraised value with assessed value?
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- ibu guruLv 73 weeks ago
Selling price for your home in the future depends on the quality & desirability of the neighborhood, condition of the house & property, updates such as high-quality & energy-efficient HVAC & other systems, etc. Unless there is demand for, say, tiny 2 BR 1BA starter homes in your neighborhood, your house needs at least 2 nice bathrooms, for example, and preferably 3 BA for 4BR. Maintain, and preferably upgrade, your house and the property - keep it looking good and all systems sound, efficient, to code, to sell your house for a decent price in the future.
- 3 weeks ago
Why do you think it is now worth 232? Where is that figure coming from? The value is what it is at time of sale, it should bring similar money as any similar home in the area. What you bought it for does not affect the market value.
- SimplytheFACTSLv 73 weeks ago
does the deed note sale between family? yes a low sale price can affect future sales, but it isn't a given....85K should have been considered a gift. If the market is good, you will have a better chance getting the market rate...but if there are a lot of other options....people with think twice about paying what appears to be an inflated price and may choose to buy something else.
I live in a condo....and have talked to a realtor about it...when another owner sells low just to sell quick, it does lower the market rate of similar units....the exceptions are short sales/estate sales/sales between family which often don't reflect market value...
it is similar with the individual property...but there are a lot of factors, while the 1 factor of a low price may be negative, there are other factors that may bring the market rate back up...time since the low sale, other sales in the area during that time, improvements, etc...the longer between when you bought and when you go to sell, the less likely your purchase price will be an issue.....if there have been a lot of comparable sales of other homes in the area, that will bring your market rate back up.
- notLv 73 weeks ago
Value can be found by having it appraised.
Internet sites claiming to know the value will calculate off things like the last sale price regardless if you received a huge family discount. Completely useless information.
You can guess it's value yourself if you compare it to other similar houses that are selling.
- Anonymous3 weeks ago
If an area is declining, there's not much that can be done about it. You may be sol.