Why NOW Might Be The Right Time To Sell
Everyone knows that for the last few years is has been a â€œBuyers Marketâ€ based on housing affordability, low interest rates and plentiful inventory.Â Conventional wisdom would indicate that if you donâ€™t have to sell, now would not be a good time to list your home.Â I have an unusual twist on the market that may change your mind about selling.
Many consumers put their homes on the market with the hopes of moving up in price or finding amenities that their current home doesnâ€™t have.Â A customer selling in a down market has an advantage that they can maximize on by buying in that same down market.Â Let me give you an example of how this might work for you using some simple numbers.
Letâ€™s assume a seller is selling his home for sale for $100,000 which is approximately 25% less than he could have sold it for 5 years ago at $133,400.Â The price paid represents a decrease in value and perceived loss of $33,400.Â Lets assume the same depreciation rate of 25%Â and the seller is able to purchase a home for $200,000 that was valued 5 years prior at $266,800.Â The savings to the purchaser on that transaction would be $66,800.Â This simple illustration shows a net gain in the two transactions of $33,400.Â Even though selling now looks like the customer is taking a loss on the first sale, the bargain that the customer gets on the second home more than makes up for the initial loss.
This is a simple example of how the numbers could play out on two sales.Â There are many variables that may enter into your exact situation.Â All real estate markets are local and I would recommend that you contact your local Realtor to see how the market and variables will work in your home town.Â
With this unique perspective on selling in a â€œBuyers Marketâ€ you might find that NOW is the right time to sell.