I hear what you're saying, but if there's one thing that's true, it's that Real Estate is local - even down to certain neighborhoods in certain towns there are pockets where homes may be still increasing in value or, at the very least, selling quickly. Alternatively, we hear mostly national media portraying the "gloomy" housing market. Big picture though, you're right....assuming you can get a decent price for your current home, you're probably going to find some savings on the purchasing end (although I wouldn't assume a blanket percentage), especially if you find a motivated seller.
Homes in the best condition, in the best location, priced well, will always sell quicker. We still see houses being sold with multiple offers, some over asking price. Certainly not to the extent that we did a few years ago, but I would caution any buyer who is looking today to understand that there are other buyers out there, homes are being priced crisper and sellers are understanding better what needs to be done in order to make their home compete.
Your biggest challenge will be selling your current home. Once you do that , interest rates are low, you'll have plenty of homes to choose from, you'll be able to write a clean offer, and you may get a great deal along the way.
Thank you for allowing me the opportunity to respond to your question.
I agree with the basic tenants of your rationale Ralph, but there are many other dynamics at work that most people overlook these days. All real estate is local. The difference between one neighborhood and another can be as finite as several blocks. The mediaâ€™s reporting of the â€œhousing marketâ€ is baffling. Can you imaging if there where a National Weather Report (hey folks, its snowing in Des Moines, so you fine people in Montgomery County, PA â€“ get out your snow shovels)? Please donâ€™t get me wrong. This doesnâ€™t mean we should take the sub-prime and credit situation lightly. But letâ€™s put things in perspective and be rational about it.
The other dynamic is change. Buyerâ€™s or Sellerâ€™s market, albeit not overnight do change. And while one real estate market can be experiencing a Buyerâ€™s market, another can be experiencing a Sellerâ€™s market at the same time. This is why it is suggested that you put an experienced local Realtor in front of your real estate transactions. As a student of the local market, let him/her run â€œabsorption ratesâ€ and market data for you. One of our jobs as Realtors is to â€œeducateâ€ the real estate consumer so they can make informed decisions.
Lastly, and I feel that many people these days have been caught up in the media frenzy and have forgotten that the real reason for buying a home ...A home pays an annual dividend: A roof over your head and the personal enjoyment that the real estate provides.
I wish you and your family all the very best!
John B. :-)
Homes that are the most up to date will sell first--- that does not mean they will sell for more. No one knows when things will turn around as far as prices go, but "the next year or so" could be 5-10 years down the line. If it were me (and this is exactly what I did), I would upgrade so that I would enjoy my home during the time I live in it, knowing that when I sell, I will price my house right, and have the best one in that range.
You are on the right track in one aspect: you don't say what you want to do after you sell your home, but assuming you want to move up to a more expensive home, you're going to save money on that end! :)
I think your logic may be flawed. Now, it really all depends on the market, and how homes in particular price ranges are (or aren't) holding up. And really, more to the point, it depends on the price points between what some call a "bread and butter" home and an upscale home.
Your rationale, if I can rephrase your question, seems to be that because prices are softer in the higher price ranges, you may be able to get more for your money. Then, when the market strengthens, perhaps properties in the higher price ranges will become more popular again.
Granted, houses in higher price ranges "are not moving at as great a pace as houses" in a lower price range. But we've got a "chicken and the egg" question. You're looking at it and thinking: "Good value, better than a few years ago." I'm looking at it and thinking: "Less demand. Less interest. Not as good a value, as perceived by buyers."
If you want to buy a house which consumers believe isn't as good a value (as measured by demand), go ahead. At some point, the market will strengthen, but it may strengthen unevenly. Just as the downturn hit some segments of housing harder than others, the strengthening will affect some segments more than others. And maybe that'll be the "luxury house" category. But....I don't know. There's one school of thought that says that the luxury market is less susceptible to market fluctuations. The people who own those homes are insulated from some of the factors that affect people in the bread and butter homes. If you own a $300,000 home and drive a 5 year old Toyota, you may be more concerned about high gas prices than someone driving a new model Cadillac. I know that in my area (Northern Virginia) the moderate-priced homes were harder hit than some of the more expensive ones. (Vienna and Oakton are doing better than North Springfield and Annandale, for those who know the area.)
If you want to buy a larger, nicer home, that's great. And if you can afford to, and it fits with your lifestyle, you probably should. I'm not trying to talk you out of it at all. There certainly are good values out there. But don't over-rationalize or oversimplify ("if all house prices were down say 10%...") Understand your real motivations. Check the numbers. Then make your decision (which it sounds like you already have).