I was recently on a listing presentation in Kissimmee, Florida. The sellers and I could not come together on the list price of their home. They were stuck on what they thought their home was worth in 2005. I was stuck on what price it was going to take to sell their home today! Unfortunately we were $65,000 apart.
I asked them what they were going to do. They needed to relocate to Orlando. They told we that they will wait until the value comes back to where it was in 2005. I informed the that the property that they were going to purchase was also lower in price today. And if they were upgrading to a more expensive home, they would be losing in the spread.
Let me simplify. Sell home at $275,000 now or wait until it increases to $340,000 (amount of time is unknown)
Purchase a home at $500,000 now or wait until you current home increases. Pay $600,000 at the time the current home increases to $340,000. So as homeowners, they will wait to gain $65,000 to sell their home but they will lose $100,000 in the purchase of the new home.
While waiting for the market to increase your home, you are now buying the increase in your future home. My example was with a 20% increase in home values. This may take 5 years or more. Why wouldn't you sell your home now, pay less for the new home and live where you need to live and accrue equity in your new home?
Sellers need to live in today's market and not in the past. House values have corrected. We will eventually see growth, but no one can say for sure when. The time to sell and buy is now! The correction may not be over!!! At least in Osceola County it isn't over yet. Oh, I didn't take the listings.
The Resident Mark
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