Page 36 - Flathead Beacon // 3.5.14

36 | MARCH 5, 2014
FLATHEADBEACON.COM

REAL ESTATE

MONTANA LIFESTYLES
Is Your House Underwater?

By BLANCHE EVANS

There are no guarantees that real estate will pro-
vide a return on investment. While some people are

able to sell their homes at a proit, others are not able to
sell without incurring a loss. If you think your home is
losing value, what should you do?
Don’t panic. Homes are not as volatile as other in-
vestments. Unlike stocks, which can gain or lose 100
percent of their value in one day, homes gain or lose
value over months and years. Real estate, like any other
commodity is subject to supply and demand. Demand

increases with the number of jobs in the community.
If there are jobs, there is more demand for homeown-
ership. If jobs are leaving the community, there is less
demand for homes. Homes historically beat inlation.
For this reason, falling real estate prices seldom retest
previous lows except in extreme circumstances when
communities are dominated by a single employer or

industry that has sufered a downturn. In most cases,
home values recede and go on to stabilize or test new
highs.
Look at the local economy. Are businesses letting
people go, or are they closing their doors? This is gener-
ally a slow process that can trend over years. In other
areas, job loss is temporary as companies shore up bot-
tom lines by letting personnel go. Eventually, they ind

that they can’t compete, and they begin to hire back
staf. So the housing stock that sufered devaluation
may see itself rise in value again as jobs return to the
area. The key question is will your community come SHUTTERSTOCK IMAGE
back or not? The answer to that lies in the desirability ities, and keep reinvesting in your home by performing they can’t perform voodoo economics and pull a proit
of the community. Has civic planning for resources and repairs and updates, and your home is in a desirable out of your home if you are overextended with equity
local amenities been wise? Is the community attrac- neighborhood, chances are good that you will recover loans, they can certainly help you with a strategy to sell
tive with natural resources nearby such as a lake or the your investment and be able to one day sell at a proit.
where losses are minimized as much as possible. Many
mountains? Are community leaders working to attract If you aren’t in a must-sell position, review the state Realtors are also cracker-jack property managers and
new growth with incentives for relocating companies? of your economy. If your inances are in disorder, with can help you lease your home until selling is more prof-
Is this a place people want to live? If so, you can look too much credit card debt, for example, and too many itable. The market sets the value for your home. Equi-
forward to a turnaround.
obligations, now’s the time to cut personal expenses. ty builds with time and the reduction of loan amounts
Your home is more than an investment. It is a place But don’t sell your home because you think prices are and interest – but only if home continues to be well-
to live. When you buy a home, you are buying more than falling unless you have another reason to make the maintained and improved when needed. If you haven’t
an investment opportunity. You are buying a stake in change. Do you want a diferent lifestyle? Want to live made any improvements on your home and buyers are

the local community, which is one of the reasons why in a diferent area? Fine, go do it.
ofering you wholesale instead of retail, again that is a
the U.S. government works to make homeownership so If you are in a must-sell position, now’s not the time relection of the market. Anytime you are able to sell
attractive. As a homeowner, you get mortgage interest to try to sell your home alone. Talk to a Realtor. Good your home or any asset and walk away with a check, you
rate deductions of of your income tax.
Realtors are more diversiied than you may think. Let did well – in any economy.
If you bought your home because of attractive qual-
a Realtor help you determine your ability to sell. While

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