Moving In The Same
Real Estate Market
thing we can count on in life is change. The typical first car has
characteristics that don't work later when you are transporting
children, i.e.- questionable dependability. After the children leave
home vehicle selection has more of a wants than needs emphasis. Real
estate is similar as wants and needs change over time.
first time home Buyer is open to many options and mostly driven by
price as it reflects on their payment. First homes are often remembered
as fondly as are first cars. The property's deficiencies that are
tolerated due to life's circumstances become a part of an individual's
or couple's life history with the stories being told and retold for
generations. The single bath, one car garage, or small lot that couldn't
hold all the toys that preceded the children all served well until they
progression takes us through needing a larger home, maybe a larger lot,
or other special wants for a specific lifestyle or activity. Sometimes
the first home is kept as an investment, or for a family member to enjoy
later. Often properties are sold for the move up. Conversely, later in
life as the children move out and our energy is preferred to be directed
to other activities than caring for a large property, the move to the
smaller home and property often occur.
each change there is a move within the market. Whether up, or down,
there are decisions to be made, each with financial and emotional
consequences. Recent years have stymied some of these moves for a
variety of reasons. Some were reluctant to move up due fear of the
stability of the global economy. Others couldn't move down as they
couldn't sell their property. In some situations equity just wasn't
there, many homeowners having found themselves owing more than their
property was worth. So what's different now? Time has solved much.
Sellers, Lenders and Agents better understand their roles in today's
market. Buying or selling; short sale, bank-owned or normal; cash or
new loan; free and clear or upside down, every situation can be analyzed
in the context of your wants and needs and the reality of achieving
them. If you need to change homes now is an excellent time to get it
done. Northern Nevada is a transitioning market. Inventory has
diminished and values have stabilized and increased in many areas.
Interest rates are at all time lows. Its time.
Advice: Buy what you want or need, whether up or down. Lose the
perception of loss from what your home was worth in 2005, and realize
that the home you want to buy has also adjusted dramatically. If you
move in the same market, you are simply changing homes to one that works
better for you. If you move down, and the market drops, you will "lose"
less. If you move up and the market jumps, you will have more
appreciation potential due to the higher price point of your new home.
You can slice and dice the numbers, but in reality, what is most
important in most circumstances is to enjoy the emotional return on your
investment. If the yard is now too big, move down. If you don't need 4
bedrooms, move down. If you have a 7 person family in a three bedroom
one bath home, move up. It's easier than you may think and your
professional agent can help you design a personal plan to enhance your
life through your real estate decisions.
Wetzel and Jim Valentine are real estate agents with RE/MAX Realty
Affiliates in Gardnerville. They are short sale and foreclosure
specialists and certified distressed property experts.
Contact them at Â