Thanks to the rising price of gas, homes in outlying areas are becoming less attractive. Why, you may ask; because people with longer commutes need to put more gas in their cars, therefore, it is now more appealing than ever to live closer to the city. This may seem like common sense, but where does that leave the people who live further away? Well, if they decide it makes more financial sense to move closer to where they work, they are going to get a lower appraisal from a real estate appraiser, and they will probably have to put their house up for less than it was worth even a month ago.
Outlying areas like the Antelope Valley and the Inland Empire have long appealed to people who were willing to accept a burdensome commute for the chance to own a better house. Because real estate has always gone for less the further away from the city you are, it is even more of a blow when something like the price of gas brings the value of your home down even further. One of the things real estate appraisers take into consideration is what the housing market in your area is like; meaning, what are the homes in your neighborhood selling for. That’s why news like this can be scary to homeowners and real estate agents.
So what can a potential homeowner do? First of all, be willing to live in a more modest home, when the housing market starts to turn around, and in Los Angeles is always does, you can consider a bigger house. Second, make sure you hire reputable lenders and real estate appraisers. You want to make sure your lender is giving you a loan that is realistic and fits your income. An experienced and thorough real estate appraiser will make sure you are getting an appraisal that matches the fair market value for your current home and help you figure if the house you are in the market for is worth what it is going for.
Things in the housing market look dim right now, but with time it will change, it is inevitable. With some patience and buy choosing the right lenders and real estate appraiser, you may find you are in a better position than you originally thought.
For more information about real estate appraisals, please visit us at www.iappraiseforyou.com