To Sell My Home, Or Not to Sell....
That is the question that most home owners have on thier mind right now. "My home is not worth as much as it was a couple of years ago... It's a terrible time to sell... I think we will wait to sell our home until the market gets better." We counsel people on a regular basis on whether to sell their home in the current market or to stay put and wait for the market to turn around. The key to this example is the amount of equity that you have in your home. You have to have equity in your home in order for this example to be accurate.
Eric Delgado with Diversified Financial Mortgage, one of the MDREpros preferred lenders shared this with us the other day, and it makes a lot of sense. (These are just examples.) We are seeing a larger price reduction in the market today on homes over $450,000, as stated below.
|
Haven't Sold Yet... Why Not? | ||||||
|
2005 |
|
Present | ||||
|
Townhouse Value |
$400,000 |
|
Townhouse Value |
$340,000 | ||
|
Amount Owe |
$250,000 |
|
Amount Owe |
$250,000 | ||
|
Net |
$150,000 |
|
Net |
$90,000 | ||
|
| ||||||
|
It's A Great Time To Upgrade! | ||||||
|
2005 |
|
Present | ||||
|
House Value |
$600,000 |
|
House Value |
$500,000 | ||
|
Down Payment |
$150,000 |
|
Down Payment |
$90,000 | ||
|
New Mortgage |
$450,000 |
|
New Mortgage |
$410,000 | ||
|
Now Is The Time To Negotiate Incentives For Down Payments and Closing Costs!!! | ||||||
There are a lot of excellent deals on the market right now with Short Sales and Bank Owned Properties. It may not be a bad time for you to re-evaluate your decision stay put or to sell your current one and upgrade to a new home!
Of course if you have pulled most or all of your equity out of your home, then the best thing to do at this point is to wait for the market to turn back around (and it will in time) and to continue to build equity in your home.
