Factors That Can Depreciate Home Values
There are a variety of factors that can depreciate the value of your home; factors way beyond your control!
The state of the economy can be directly correlated to the changes in the real estate value.
A weak economy means a higher unemployment rate, which, in turn, decreases the purchasing capacity of the buyer.
The resultant surfeit of properties can lead to lower selling prices and higher selling times.
Another factor that can severely affect the property’s value is the mortgage interest rates and the changing demographics, as the prices in any particular area may depend on the types of the homes that are in demand.
Short sales and foreclosure can also distort the home prices, especially when foreclosed homes are used a comparable sales by the appraiser.
Severe weather and high property taxes can be a factor too!
Got questions about evaluating your home’s value? Contact your realtor.
