Proceed with caution, oh ye of faint of heart, for I am going to say it again:
A GREAT time to SELL!!!
Please, PLEASE, WAIT! Before you bombard me with everything imaginable attesting to the contrary, please read on, for it truly could be:
A GREAT time to SELL, IF…
…you are wanting/needing to STEP UP in housing!!!
“How is that possible?” you ask, given everything you hear, read, and see attesting to the contrary regarding the current Real Estate market. Simple, it’s all in the math.
Here’s how:
Let’s say you currently own a home in a market that has generally settled 5% over the last year. This means that your home that would have sold for around $200,000 a year ago would now probably sell for around $190,000.
Spring 2007 price: $200,000
$200,000 x 5% = $10,000
$200,000 - $10,000 = $190,000
Spring 2008 price: $190,000
And of course, you say, “But John, that is a LOSS of $10K!. Why in the world would I want to sell at a loss of $10K versus a year ago? And, how does that translate into a GREAT time to SELL?” My reply is that “It all has to do with how much you could potentially SAVE in that new home purchase!”
Let’s keep that 5% market adjustment number, stepping up to a home that would have sold for around $350,000 a year ago:
Spring 2007 price: $350,000
$350,000 x 5% = $17,500
$350,000 - $17,500 = $332,500
Spring 2008 price: $332,500
How about that? A SAVINGS versus a year ago of $17,500!
So now, let’s settle-up:
LOST with old home sold: $10,000
SAVED with new home purchased: $17,500
$17,500 - $10,000 = $7,500
A NET SAVINGS after BOTH transactions CLOSE of $7,500!
The bottom line:
MORE house for LESS money! How COOL is that?!!!
Of course, the above example is offered for informational purposes only, and, as at any time in any kind of market, everyone’s situation is different, and selling may not always be the best option. But, if you are looking to upgrade, the money you could potentially save, combined with the number of property options to choose from and historically-low mortgage interest rates, and, it truly could be:
A GREAT TIME TO SELL!!!
Thanks for reading. Comments and questions are always welcome.
Best,
-JC/CBA
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