Well if your thinking about trading up. Now's the Time. Here's why:
Traditionally speaking, Its always better to trade up in a buyer's market, like the one we are in now. Even though the value of your house has fallen, the price of higher-end homes has also dropped.
Say you have a home that was appraised for $300,000 6 months ago. Chances are if you were to sell today the value has dropped an average of 10%, which means your home is now worth $270,000. It would then appear that you would be taking a $30,000 loss, right?
What people tend to not realize is that $500,000 Dream Home you have been wanting to buy, has also dropped 10% over the past 6 months. This means you can buy it now for $450,000. The difference in price between the home prices would be $180,000.
But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are that same move-up home would also move up in price to at least 10 percent to $500,000. That's a $200,000 price difference between the two homes.
So if you don't wait and sell today, you would actually save $20,000. And most likely, by jumping into the market today your savings would be even greater because consumers have much more bargaining power when shopping for higher-end homes in a buyer's market.
Remember it's all percentages. The market is red hot for those that still understand Real Estate is one of the Best investments you will ever make.
On top of that anytime you can buy a home that is much less than if you where to build it on your own, that's what I call a Win-Win. No time wasted, you know what the exact financial commitment will be, and you can start enjoying it NOW!
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