Also this decline in the market hasn't been accepted by all sellers so you may find a home you really like but that particular seller may not have accepted the fact that they will not be getting what they intially wanted and therefore you may not be able to buy that particular house for the low price you want. If you are open to many possibilities of homes and not attached to a particular house, then you have a better chance.
Whether it makes sense to make the move now depends on your situation and your reasons for the move. If the need is an actual need such as closer to work, bigger family etc. then yes, I would explore the idea. Good luck!
I work mostly with investors and we buy at super low prices so if you could get a deal like that and then sell it would work out great for you.
Hope that helps.
I would be happy to give you a free home report of the price it would take to sell right fast.
Do a statistical analsis of activity in the price range where you are selling and compare it to the price point where you are buying.
It could very well be that in the lower price point in your community, there is more firmness in the market. The upper end may have been hit harder and may be continuing to experience softness.
Also, remember that great deals are negotiated. Put yourself in a position of power to be able to negotiate the best terms possible.
What can you do now. Sell and buy what you want.
Example sell $300,000 house down 20% = loss of $60,000
Example buy $700,000 house down 20%= save of $140,000
Take the chance, if you wait, the $700,000 house will go up also and with that the payments go up.
If you have those two resources at your disposal, your best probable scenario is to rent out your present house, probably at a positive cash flow - more coming in, as rent, than going out, as costs. If you are that fortunate, and many people still are, then it's a great time to make a non-contingent offer on one of the terrific buys that exist in today's market.
Give me a call if you'd like to discuss the possibilities - I'm well versed in this scenario, and help many of my clients get their former houses rented out. Call me at 949-643-2100, or email me at Bob@BobPhillips.net .
Have a great weekend!
"The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.â€ (Time Magazine).
"If home prices dropped by 5%, hereâ€™s what it could look like if you decided to trade up."
Sell: Home Price: $200,000 Sell for $190,000 ($10,000 loss)
Buy: Home Price: $400,000 Buy for $380,000 ($20,000 Savings)
The smaller loss at sale will be compensated by greater savings at purchase, resulting in a significant net gain."
If you would like to request any reports or market data please let us know. We would love to be able to assist you and provide any additional information. Feel free to contact me.
Karen La Rue
You are moving sideways...and into a better neighborhood. I have a couple of clients who are doing this and getting the ocean view they have always wanted.....you're right, selling lower and buying lower. Sadly it's rare that you can sell high and turn around and buy low, unless you are leaving the state.
The key is to position your current home to align with the market. There are four crucial factors you need to consider to maximize the potential sales price.
It also may be wise to plan on living in a rental for 3-6 months once you close on your sale, so you have no concerns related to finding the home of your dreams, but not being able to sell your current residence at the price you want. You could put all your belongings in storage and rent a furnished home....it will be like being on an extended vacation:-)
If you need help, give me a call if you decide to move forward!
It does seem like a Catch 22. Today's market has been the best market for buyers in almost a decade, but I think you already know that or you wouldn't be considering selling your home. Today's market is the "Perfect Storm" with prices AND interest rates lower than they have been in years.
I have a marketing program backed by my companies extensive advertising budget that has homes selling on average, in 11 days. He who sells first in this market wins. I'd love to share with you how this program works. I can be reached at (949) 278-4807 or you can email me at SandraCarlisle@firstteam.com.
I also have 5 different ways to save you a LOT of money using the Purchase Agreement to your advantage.
Excellent posts so far. Please note that the statistical data can be fine-tuned. Depending upon your situation (current property versus target property), have a good Realtor run some reports and look at the market trends in a small, specific area. In most cases they can run reports on Thomas Guide pages/segments, or ZIP codes. The key is to understand the trends and realize that even in a downward-trending market, there are advantages to buying and selling.
There are opportunities in most parts of Orange County because some sellers need to sell their home now and are therefore pricing it below market value. So it is a good time to be a buyer. On the flip side, it is a hard time to be a seller as the high number of homes on the market means it is taking a lot longer to sell a home than it did a year ago, and you'll need to be very competitive in terms of your asking price, and the price you will ultimately accept for your home.
If you do decide to put your home on the market, I recommend waiting to make an offer on another home until your current home has sold. You don't want to put yourself in the situation of carrying two mortgages if you don't have to.
Best of luck with your real estate decision!
Real Estate Broker & Lawyer