So, this is the time of year when we all start seeing For Sale signs popping up all over the place right?  Well, this year I'm not seeing nearly as many so I think people are worried that they may not get what their house is really worth.  Unfortunately, your house is worth exactly what it's worth right now and what it may have been worth a year or 2 years ago is ancient history!  You would like to buy a bigger or nicer home, maybe in a better neighborhood right?  Lets take a look at the market today and compare it to say a year ago, then we'll project ahead several years to see potentially where we could be if "normal" appreciation returns.

Your home last year - $200,000.00

Your home today -     $180,000.00

This would be a drop of 10% - actually much more than average in the DFW area.

Now, lets say this same home goes up 6% per year for the next 5 years. 

           year 1 - $190,800

           year 2 - $202,248

           year 3 - $214,382

           year 4 - $227,245         

           year 5 - $240,880

So - your $180,000 home has gone up $60,880.00  Not bad right?  Good thing you didn't sell right? -

                                             WRONG! 

Lets assume you would have sold your "$200,000" home and buy a $300,000 home.  We'll also assume the same 10% depreciation from last year, and the same 6% appreciation the next 5 years.

          $300,000 depreciated 10% is now selling for $270,000.  Lets see where we'll be in 5 years. Any bets?

       Year 1 - $286,200

       Year 2 - $303,372

       year 3 - $321,574

       year 4 - $340,868

       year 5 - $361,320

So, the $270,000 home has gone up - drum roll please! - $91,320.00  you would have increased your equity position if you bought today by over $30,000!!!

It can be difficult to grasp this information without seeing it demonstrated in front of you, like I tried to do here.  If you are wanting to trade up, there is really no reason at all to wait until values go up!  In fact it will cost you money!  You have to remember that your home isn't the only one that has gone down in value - everyones has!  You should contact a competent Realtor who can really feel this market and can accurately price your home for as efficient and quick a sale as possible. 

                          Now, adjust your attitude, all is not doom and gloom is it?