Are you thinking about selling your home, but waiting for prices to rebound? You might be making a mistake. There are plenty of reasons you might want to hold onto your home for a while longer, but for most of us, market conditions aren’t usually one of them.
The logic usually sounds something like this. “If I sell my home at a lower price, I’ll have less to invest in my next home, and I won’t be able to afford the property I really want.” That makes sense if your home’s value is being depressed by a factor greater than the homes you’re considering buying, but since most of us tend to move locally, that usually just isn’t the case. If prices drop by a similar percentage, you’ll spend less money if you move up while prices are low.
Here’s an example. Let’s say you have $100,000 left on your mortgage, and your home used to be worth $300,000, but is now worth $200,000. You want to buy a home that used to cost $600,000, but has also dropped 33 percent, to $400,000. If you sell your home now, you’ll net $100,000, which means you’ll have a $300,000 mortgage on the new property. If you wait until both properties climb to their original level, you’ll net $200,000, but you’ll need a $400,000 loan to close the gap.
There are plenty of exceptions to this rule. Sometimes, lower-priced houses are hit harder, with a glut of foreclosures and new construction on the market, while luxury properties remain stronger. In those cases, waiting makes a lot of sense. You might also be moving to an area with a very different market, or you might want to move for more than financial reasons. If your dream house is on the market and you absolutely need to have it, price may not be your most important consideration.
If you have questions, always speak to a knowledgable REALTOR® before making any decisions. A good REALTOR® won’t try to force you into selling before you’re ready, and will be able to provide a wealth of information about your market that will help you make your most informed decision.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley Columbus Delaware Downtown Dublin Gahanna Grandview Heights Granville Grove City Groveport Hilliard Lewis Center New Albany Pickerington Polaris Powell Upper Arlington Westerville Worthington