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Why Homes for Sale May Be More Affordable than You Think

by Marquette Turner Luxury Homes

in Real Estate Radar, Variety

Just recently, it was revealed that Stephen Curry sold his home for $2.94 million. That may seem like a lot of money, until you find out that he bought it less than 2 years ago for $3.2 million, and then he also spent even more money on renovations. The mansion was among the homes for sale listed on the market in 2016 with a $3.7 million price tag, but there were no takers.

People sell their homes for a much lower price, and they may even have good reasons for doing so. At least, that may be true from their perspective. In some cases, home sellers are convinced that selling their home at a loss may still be an advantage for them.

Here are some possible reasons for this:

  1. Their life circumstances have changed. This is especially true for Stephen Curry, because no one thought that he’d be the MVP and arguably the most famous face of the NBA when he first came into the league. Now his jersey is even outselling that of LeBron James’. The problem with this particular home is that it wasn’t as secure as they wanted. He wanted to relocate quickly, and that means taking a loss on the house.

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For ordinary people, often the life circumstance that necessitates a home sale is the change in the number of residents. Perhaps the parents no longer have their children living at home, or maybe they need a bigger house because they’re having a new baby. For some people, selling the home quickly is more important than waiting for a profit.

  1. Parents are divorcing. This is rather a very common occurrence these days, and often a divorce means spliting the properties between the spouses. In some cases, the home may be sold quickly with the proceeds shared between the ex-spouses so that there’s no squabbling as to who gets the house.
  2. The parents are relocating because of a new job. This is another reason why quick sales are often regarded as more crucial than turning a profit. Often these job offers come with a schedule, and so the parents who are moving to a different city or state for a new job will need money to buy a new house in their new city. So this means that they need to sell their old home quickly.
  3. Parents want a better school district for their children. The public school kids go to depends on where they live. The problem is that some public schools are better than others, so parents often relocate to a new district when they realize that their current district’s public school isn’t good enough for their kids. If many home buyers realize the lack of quality in the nearby public school, it’s understandable if the price of the home isn’t as high.

In some cases, this relocation may even be about athletic opportunities for kids, because a particular school has a better program for football or basketball. Some high schools in Texas, for example, are highly regarded because of their high school football programs.

  1. Maybe the real estate prices are just falling. In which case, a quick sale makes a lot of sense for the seller, especially when they’re eyeing other real estate opportunities. That’s because there’s always the chance that prices may even fall further after a month, so they’re just cutting their losses.

If you’re the home seller, you need to balance your need for profit with the advantage of selling your home quickly. The same is true for the buyer but in reverse—if you’re willing to wait, then prices may go down for

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