Is there anything I can do?
My home is losing value;
The biggest investment I made
Is starting to fade
Can you help with a wise thought or two?
-Primm
The double-digit appreciation of year's pass has quickly disappeared for many African American homeowners. If you live in an urban or rural area of the country I don't have to tell you what home prices is doing.
African American homeowners, who financed homes with zero percent or 1% financing, is getting a quick education on real estate finance ... the hard way.
No longer can African American homeowners depend on appreciation to rescue them out of bad loans. Now many homeowners find the homes they live in losing value because of the slow real estate market and tighter credit.
If you find yourself in one of these sticky situations, don't panic. The key is to take action and follow the suggestions I am about to share with you.
I'll offer you important tips you must keep in mind if you have a home that is losing value. The more of these suggestions you can follow the better off you'll be in the short and long run.
1. Don't Trip - Don't Panic.
The first rule is not to panic and act without thinking or planning. I can tell when people watch the evening news or read the newspaper minute by minute because they have a reactionary mind-set instead of an action oriented mind-set. Soon as they here their home is losing value they immediately call a real estate agent to sell their home without knowing the facts or researching their options.
If you can avoid panicking and keep a cool and rational head, you've taken a major step in overcoming any problems you may face during this housing value decline. With a cool head you'll have what it takes to see the number of options you have available, some that may surprise you.
2. Keep Informed ... Notice the signs.
Now this doesn't mean staying glued to the real estate or financial sections of your newspapers day and night. It simply means having a working knowledge of what's happening in your local housing market.
You can often do this by simply observing how many real estate for sale signs go up in your neighborhood - and how long they stay up. It's also about keeping your eyes and ears open at what's happening in your neighborhood.
In our fast paced, don't have time to talk society; you may not have the time to know all your neighbors.
But every neighborhood has someone who knows everything that happens in the neighborhood. I used to affectionately call them the "Know everything neighbors," they knew something about everyone in the neighborhood.
You know, like the retired grandmother on the corner or the friendly seasoned citizen couple who loves to work in the yard. Find them and get to know them.
When I was a real estate agent I would always make it a point to find that person before attempting to sell a home. I could learn more about a neighborhood talking to that one person in one hour than I could researching all day on my own.
3. Keep Your Own House in Order.
While home values may be declining now, history has proven they always rebound. So, the most productive action you can take now is to preserve your homes appearance, comfort and functionality. Keep the repairs up, keep the maintenance up and keep the appearance up.
If you do this your home will maintain and increase in value quicker when the market finally turns around.
Another key to keeping your house in order is to learn how to do minor repairs yourself. This simple suggestion could save you hundreds or even thousands of dollars a year.
Invest in good books or videos on how to do home repairs and maintenance, the investment will pay you back many times over in savings. But know your skill level limitations before you tackle a project. Don't risk destroying something or worse yet injuring yourself to save a few dollars if you're not equipped to do the job.
4. Help Yourself by Helping Your Neighbors Sell.
The best way to help preserve your homes value is to help your neighbors who are trying to sell their home. How can you do this? Simple, by keeping your own homes appearance up.
A fresh coat of paint, a freshly mowed lawn and landscaping, plus other touches can help your neighbor sell their home faster.
When potential buyers come to look at a home that's for sell they not only judge the home up for sale, they judge other homes in the neighborhood. Didn't you? Think about it. I know I did, in fact I avoided making an offer on two homes I liked because the other homes on the block were "dumps."
Why should you want to help the homes in your neighborhood to sell? Because the longer they take to sell, the more pressure on the owner to reduce the price. And the lower the price the home sells for - the lower the home values in your neighborhood goes, it's as simple as that.
5. Don't Worry Unless You Have To ... Then Still Don't Worry!
Realize your home is only losing value if you plan to sell or refinance soon.
If you don't plan to sell your home or refinance anytime soon declining home values shouldn't be a major worry to you.
So, enjoy the fact you don't have the same worries other homeowners in this credit crunch market has. But still take the time to help those homeowners who have problems where and when you can. Why? Because with a little less knowledge, money and credit you could be in the same situation they're in now.
If history proves true, this real estate correction can last two to three years or until the next presidential election - which ever comes first. So do what you can to preserve your home, your credit and your sanity until the real estate market rebounds.
During a real estate slump, African American homeowners face declining home values faster than any racial group. We should take it upon ourselves to help each other. Homeownership is an important part of every African American community, providing stability, financial empowerment, stable families and less crime.
Let's do our part to help others maintain there dream of homeownership by providing assistance, referrals and information when we can. By doing this you'll help your community eliminate poverty, instability and urban blight.
