Thread: Do I get my bond value back if I pay if off early?
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Old 01-18-2021, 08:40 PM
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npwalters npwalters is offline
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Originally Posted by retiredguy123 View Post
I think we have an issue of semantics. The value of a paid off bond is less than the amount used to pay it off. So, if your house has a market value of "X" on Monday and you pay off a $10,000 bond on Tuesday, you would hope that your house will be worth "X plus $10,000" on Wednesday. Unfortunately, your house will actually be worth much less than "X plus $10,000" on Wednesday. So, if you are going to sell your house tomorrow, don't pay off the bond today.
Totally agree. Human nature for the buyer to undervalue items they can't touch and see.

Ask a current buyer how much the "Blue Whale" model house costs. Most will tell you it cost X dollars plus upgrades. Very few will include the 30 to 40K cost of the bond even though they are aware of it.
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Last edited by npwalters; 01-18-2021 at 08:45 PM.