Clients often ask me my opinion about undulations in real estate values. “Will my home lose value due to certain market factors?” is a common question. There are certain times when I feel comfortable providing them with my opinion about specific market factors that might affect the value of a home. However, I have discovered through many years of observing real estate market values that few forms of predictive analysis are consistently accurate in predicting market value changes.
Having said that, there are several things that a homeowner might consider changing / modifying in their home. This is an area that I can provide some sound advice to a homeowner. If one considers making extensive changes to their home it’s a very good idea to consult with me before making any final major redecorating decisions. Perhaps I can help with finding a valuable and skilled worker in a specific area of construction. Maybe I can assist in the decision process of choosing decorating materials. Certainly I can provide benefit to a client regarding all aggregate expenditures on a remodeling project and how such changes in the home will affect value in a specific neighborhood.
Global wars, micro and macro economic issues, and the ups and downs in the stock market can, indeed, affect home values. But those changes in values are usually not long term economic events. In fact, there have only been three major events since the Great Depression of the 1930s that have caused significant devaluation in residential values. Staying abreast of local, national, and international economic and geopolitical events is always a good business practice, but concentrating on issues that fall more within a homeowner’s control is a very prudent way to control relative home value changes and home equity value.