Was 2005 Good to Your Home

Was 2005 Good to Your Home’s Value?

 

Why are so many Tulsa area homeowners smiling? Perhaps they’ve just seen the latest numbers for area home values.  The Tulsa metropolitan area has benefited from an increase in average home values of 5.5%.  While not the rate of some booming areas of the country, Tulsa’s 2005 rate of increase is 1.7% higher than any year since 2000.  This increase is a very normal rate of appreciation for the United States and is an indication of a healthy market for Tulsa.  The cumulative home appreciation since 2000 has been 13.5%.

 

Does this mean you should cash-out and move to a larger home?  Consider the investment side of the equation.  Waiting to buy a new home because you “have to have more money” for your present home simply means the home you plan to purchase will increase in value as well.  In a circumstance where you plan to “move up” to a larger home, waiting is detrimental.  It stands to reason that profiting from a 10% value increase on the $300,000 home you are planning to purchase ($30,000) is far better than a 10% increase on your present home of $150,000 (or $15,000).  Waiting to purchase a home in this instance costs you $15,000.

 

The best time to downsize, however, is when the real estate market is depreciating so that the biggest loss is on a smaller property.  Smart real estate investors use these cycles to buy and sell to work towards their real estate goals.  Individuals can smartly use the same cycles to gain greater wealth in their real estate holdings. The real trick is knowing which cycle you’re in and how long it will last.

 

Determining your home’s value is not as simple as adding a percentage to what you paid for it.  Wear and tear, style changes and trends in area values will cause tremendous swings in values.  Your primary concern should always be your competition.  What can a home buyer get for the same money you are asking for your home?  This simple question holds the secret to why some homes don’t sell and others fly off the market in a matter of hours.  Pricing is one of the critical phases which calls upon the expertise of your real estate professional.  “Removing the emotion from the decision is very important to determining the right price,” says Jerri Sell-McNair, Listing Partner for the Baskin Real Estate Specialists.  “Children have grown up in your home, family got married there, the wallpaper was a custom design – things home buyers won’t pay more for.  A good real estate professional will size up the competition and help a seller position their home at a price level that makes buyers WANT to buy it without leaving any money on the table.”

 

The statistical information referred to in this article is available by emailing info@darrylbaskin.com or calling 918-258-2600.