Blog

March 03, 2017

What You Paid for Your Home is Irrelevant

While this may be a controversial heading its true, especially in the current Capricorn Coast market.  I understand that for many of us our home is our most valuable asset and of course it is only natural to hope it will go up in value. Sadly, though for many who bought during boom times from 2007 to as late at 2012, your home may not have increased in value.  In fact, its likely to have declined in value, even if you have done improvements.  The last 10 years have been tough, real tough, and it has taken a huge toll on our local property prices.

Just because you might have paid say $450,000 for a property in 2007 does not mean it is worth that much or more in today’s market.  I wish it did, but the sad truth is its probably worth much less, depending on location, and presentation.  Unfortunately, we are constantly meeting home owners that are selling their home for a loss, sometimes $200,000 or even more.  Your real estate agents job is to sell your home for the highest possible price in the current market.  The Capricorn Coast has been a buyers’ market for years now and buyers know how much properties are worth and are selling for.  The amount you paid for your home is irrelevant, how much you have spent on improving your home is also not important, when deciding how much to market your home for sale. There really is only one thing that matters, how much a buyer is prepared to pay?  

Of course if you are thinking about selling you will need to consider, how much do you owe on the property? Maybe even how much is the property costing you to keep, and what are you going to be able to do with the proceeds from the sale of your home? 

Remember, whatever market you sell in, you can buy in - making 2017 a great time for locals to upgrade as there are some terrific bargains available.