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I currently value my condo at $165,000 but I am not so sure that is market value today. I got my place appraised as part of my refinance in November 2008 and it appraised at $165,000. There is a 3-Bedroom, 2-Bath condo currently on the market in my complex for $139,900. I paid $130,000 for my condo back in 2003.
Perhaps it would be best to value my condo at cost rather than at $165,000. This would kill my net worth but it might be more accurate. If the place sells at $130M, at least I am still afloat since my outstanding mortgage debt is $122M.
Another problem many condo owners are facing is that our complex and similar complexes are not FHA approved. It is difficult to find conventional buyers in today’s market. Heck, many of us weren’t conventional homeowners either but got out financing through some 80/20, 80/10/10 program. I know I did but these loans are no longer available it seems in today’s lending market.
What does this mean? Well, owners of distressed condo units are going to unload their properties for much less than the market value and depress the values of similar condos in hopes of finding a conventional Buyer. Consequently, many owners are also going to find themselves stuck and unable to sell since they now owe more than their condos are worth.
Things are just tough. I am fortunate that I can rent out my condo in the event I cannot sell.
Perhaps it would be best to value my condo at cost rather than at $165,000. This would kill my net worth but it might be more accurate. If the place sells at $130M, at least I am still afloat since my outstanding mortgage debt is $122M.
Another problem many condo owners are facing is that our complex and similar complexes are not FHA approved. It is difficult to find conventional buyers in today’s market. Heck, many of us weren’t conventional homeowners either but got out financing through some 80/20, 80/10/10 program. I know I did but these loans are no longer available it seems in today’s lending market.
What does this mean? Well, owners of distressed condo units are going to unload their properties for much less than the market value and depress the values of similar condos in hopes of finding a conventional Buyer. Consequently, many owners are also going to find themselves stuck and unable to sell since they now owe more than their condos are worth.
Things are just tough. I am fortunate that I can rent out my condo in the event I cannot sell.
1 comment:
I agree..it is time to value the condo for what is you bought it for....I am in the same boat and have adjustmend the value of my condo to what they are now selling for.
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