than selling for an actual loss. If several neighbors’ properties in the region owe more than what they are worth and are on the verge of foreclosures in the near future, that scenario might affect your property value, too. This is because most homes like this are resold at bargain rates. Under this scenario, you must also think of lowering the price on your home to preempt and compensate for the drop in area values that is likely to follow in the wake of foreclosures. Do not be misled by the statistics that project only a modest decline in the sale prices. Many sellers might announce some attractive incentives and credits in order to sell their properties. Therefore, when the statistics are showing only modest price drops, sellers end up netting more than what they would otherwise lose due to the drop. In cases where higher end homes are selling better than starter homes, the median sales prices could give false readings. Under such circumstances, the drops in median sales prices reported will understate the degree of the downturn. Know that in some areas, it is possible for the median sales price to rise even when the home prices are falling. When your home price has dropped by about
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