Take the current home priced and divide by 2…and start from there. Although this may seem ludicrous to some, if you think about the gross over-appreciation in the past decade it’s not that bad of a concept. The price of homes here in SoCal basically tripled (or more) in 10 years. So, a home that was once $300K is now $900K. Take 50% of $900K and you are left with $450K as a starting point. Simple enough? 🙂