Tag Archives: Home Value

What’s Your Home’s Real Value?

As a society, it seems like we’ve gotten away from appreciating our homes for their emotional and sentimental worth. Instead, we focus solely on their monetary value.

An Appraiser Can Estimate A Home’s Monetary Value, But To Gain A True Concept Of Your Home’s Worth, You Must Also Take Into Consideration:

  1. Pride Of Ownership. You don’t buy a pair of Prada shoes because you’re going to be able to resell them and make a profit. You buy them because they make you look good and feel good.
  2. Security And Stability.  Your home provides a roof over your head that’s in your control. You can decorate it how you want. You don’t have to worry about a landlord selling the property or asking you to move out. In the “olden days” (or should I say “golden days”), we called our homes our castles because, as owners, we felt like the kings and queens of our homes. You can still feel that way! Claim your castle and crown yourself king or queen today.
  3. A Safe Haven.  After a tough day at work or a day of disappointments, where’s the first place you think of going? Home! As Dorothy says, “There’s no place like home.”
  4. A Place To Make Memories.  Your son’s tree house and daughter’s playhouse.  The markings on the wall that tracked your children’s growth. The porch swing where you start and end every anniversary celebration.
  5. A Neighborhood Full Of Friends.  In the event of an emergency, your neighbors are your first line of defense. They’re also the simplest, best and least expensive form of security. Additionally, they may have the exact tool you need for a project; the extra pair of hands you need to complete a project or children to become playmates with yours. Neighbors also give you that much needed in-person, up-close social network.

Even if your home’s economic value has dropped, you continue to benefit from its emotional values of community, stability, security and success.

Thinking of buying a home? I can help you evaluate the emotional and monetary worth of homes and find a home that fits your values and lifestyle. Give your trusted mortgage professional a call today.

Can That Killer Home Theater Add Value To Your Maine Home?

Many home owners dream of having a home theater – an entire room of the home dedicated to enjoying television and film. These rooms are usually equipped with a large flat screen television or projector, comfortable seats, mood lighting and perhaps even a bar or a snack fridge.

They are very comfortable and the perfect place to relax after a hard day. They are also lots of fun for entertaining, as you will be able to watch the big game or the hottest new release with your friends in style.

However, will spending the money on renovating your home to create a theater room be a smart investment? Does this type of home improvement add a lot of value to the property, or will it turn off potential buyers?

Buyers Interested In Tech-Equipped Homes

These days luxury home buyers are becoming much more tech-savvy and they are demanding more networked or ‘smart’ homes than ever before. They are looking for a house which is outfitted with the latest in technology, so a modern home theater will be a desirable selling point. If you are targeting your home to this luxury market, the home theater could give you an edge over the competition.

It is difficult to determine the amount that the home value is affected when you add a high tech home theater, but most real estate professionals will agree that when there are many houses for sale at any given time, the one with an impressive home theater room will be more likely to sell first.

Don’t Take Over Valuable Home Space

The only situation in which the home theater could detract from the value of the home is if it overpowers a medium sized or smaller home that just barely had enough space in the first place. If your home cannot spare the extra room, taking up a lot of space with a home theater will mean fewer bedrooms or living spaces and a potential decrease in value.

However, you might be able to get around this problem with clever solutions that allow you to conceal the home theater unless it is being used. You could hide the large screen behind specially designed cabinets and set up the furniture so that the room can be a living space when not in use as a theater.

Remember that a home theater system is something that will generally only increase the value of your home for certain buyers, as opposed to something like a bathroom renovation or a garage which will be valuable to almost every buyer.

To find out more about upgrades that affect the value of your Maine home, contact your trusted home financing professional today.

National Home Value – A look back over the last 36 years


The housing market still faces many challenges. High unemployment, foreclosures
and other distress sales are keeping negative pressure on prices. This of course
is good news if you are looking to buy as low rates and lower prices have
brought affordability to record levels.

How Affordable?
Since 1963, it has cost an average of approximately 43% of ‘per
capita’ or individual income to finance the cost of a median priced home (20%
down payment and prevailing 30 year fixed rate mortgage). Right now, it’s only
about half of that cost at approximately 22%.

Are you holding off
on a purchase for fear that prices might fall further? –
Chances are
that some sellers might be thinking the same thing. If you’re smart about it,
you can use that as an advantage to strike the best possible deal on a home
today for once a seller believes that prices have bottomed or are going back up,
your advantage will be gone.

Don’t confuse Price with Payments
Gambling on the expectation of a lower price tomorrow at the risk of
higher rates can cost much more in the long run than locking in a sure thing
today. Ex. $200,000 30 Yr. fixed loan @ 4.625% = $1028/mo. today vs. $180,000 @
6.5% = $1137 per month later. In other words, paying less can still cost you

Own, Rent, or Borrow – One way or another, a home
is something we all need every day. The numbers here tell the story and it’s no
secret that values have fallen, yet over time, that’s not the case. As you can
see by the chart, values over the last 10 years in most states show very healthy
appreciation. And over the long haul (map), all states have positive

We don’t get a history lesson in the news because
the news is about the moment and the more dramatic the better.
what sells advertising and that’s how they get paid. For the rest of us, taking
a rational, longer term view of things makes more sense. This is particularly
true when it comes to a home, for this is something we are likely to own for
many years rather than just moments.