A Cautionary Tale from the Field and The Market.
The Market
Headlines of doom and gloom in the real estate market can be attention grabbing, however once you dig into the articles, I have found depreciation statistics are on the west coast in markets like Phoenix, San Francisco and Seattle. There has not been significant depreciation (less than 1%) recorded yet in New Jersey. With the limited inventory and continued high demand, it is still a seller’s market and just this past week I appraised a property in Stirling that went $50,000 over list price.
I have studied the market long enough to know that the average sale price of homes is lower in the winter months. Just keep that in mind when discussing the market and hearing people talk about the market going down. The spring will be a better indicator of how the market is moving and of course, we shall see where the interest rates are at that time which can certainly impact how things play out.
A cautionary tale from the field.
In July of 2020 I appraised a 4-family dwelling in Linden for divorce purposes. The value then was $550,000. Fast forward more than two years later and the owner called me again a few weeks ago. The balloon payment on his mortgage was due. His his two kids are on the deed with him, who are young adults, and they don’t want anything to do with the property anymore. In fact, they are now demanding to be paid a third of the value each. Aside from this owner now having to go to court, the kicker on top of that is the dwelling is now worth $670,000. If you have a deed shared with any kin, make sure you consult with a qualified trusts and estate attorney to make sure it is set up property to protect yourself and your assets. I am happy to recommend an excellent one.
The market can be tricky at this stage in the cycle and if you are in need of an appraisal to determine the fair market value, we are happy to help. This could be for pre-listing, divorce, estate and tax purposes, PMI removal, refinancing, or another reason, please let us know - 908-233-1337.