Market Conditions in 19446>Question Details

racikj, Home Buyer in Lansdale, PA

is there an advantage to selling my home and buying another in this market?

Asked by racikj, Lansdale, PA Sun Jan 8, 2012

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Well this is a loaded question and with not knowing the price, size and age and upgrades of your current home, and whether you want to buy bigger or smaller it is hard to tell. The outstanding loan amount on your current home will indicate whether you current home will sell with leaving you with equity....or not.....

Home values in most parts of the country have gone down, how long have you been in this home, how much
do you still owe the lender?

And then where to, another state, are prices there higher or lower, do you want to up or down grade, buy a larger or smaller home. Once we would know some of the above we could give you some better advice.

Work with a local Realtor who can find out the current value, and discuss your options with you.

Working always in the very BEST interest of her clients, buyers, sellers and investors alike!
Edith Always goes the X-tra Mile with a Smile for her clients :)

To get to know Edith a bit better and to find out what an experienced Realtor can do for you with their
expertise, experience in the market place, and the various services they offer please go to
0 votes Thank Flag Link Mon Jan 9, 2012
If you really want to buy another home, for whatever the reason, then the biggest advantage I see is today's very low interest rates. Yes, you will put out a sizable amount for closing costs for both buying and selling, but if it is in your plans anyway, then this may be a good time. You will sell low, but you will also buy low. If you weren't planning on making the move, then you might want to look into refinancing at today's low rates.

A consultation with a Realtor about the market where you are now living and the market where you plan to move may help you make your decision. Let me know if I can help.

Carolee, Associate Broker
The Barndt Agency, Inc.
215 34-8041
Web Reference:
0 votes Thank Flag Link Mon Jan 9, 2012
The person to ask is your tax consultant! If you need more deductions, it might be worthwhile thinking about a larger house now that the rates are low. If you know you will want a bigger house in the next ten years, then think about it now. And ask your tax person about the benefits of keeping your current house as a rental.
0 votes Thank Flag Link Sun Jan 8, 2012
I agree with Don, if upsizing there can be a big advantage. In my market the more expensive homes have seen a greater percentage decrease than the more affordable homes. There has been more compression of values the higher they started. While your home may be down X% a step or two more expensive home might be down X% plus. With the current rates so attractive general affordability is great.
The question is, if you have a need for a larger or more expensive home will there be anything in your future which would make it worth waiting for? Are you anticipating any large raises or bonuses later to offset the general affordability now?
The other advantage of upsizing, if you can reasonably afford it, is when the market returns your appreciation will start from a higher basis point. If two homes both go up 10% over a given time period the $200,000 home gains $20,000 while the $300,000 home gains 50% more at $30,000.
Talk to some good local agents about how this may or may not apply in your area. In mine, we are seeing many people put this leverage to their advantage.
0 votes Thank Flag Link Sun Jan 8, 2012
Hello, Racikj,

There is no advantage UNLESS you want to change homes. For example, you will have considerable expenses in closing costs on the sale of your home, as well as closing costs on the purchase. I don't know the price range you are considering, but I would be that you could spend as much as $20,000 to buy and sell two properties.

Now...if you are excited about moving to a different place, having a new home, perhaps something that has amenities you don't have, it would be a great time. Anything you lose in the sale of your home is made up in the purchase of the new one at a good price. If, however, you want to buy just because you think prices are down, remember...someone buying your present home feels the same way.

Good luck to you, whatever your decision!

Carol Cei, ePRO, Realtor
Five Star Professional
ReMax Platinum Club
ReMax Action Realty
215-358-1100 x1223 Office
215.643.9661 Cell
Web Reference:
0 votes Thank Flag Link Sun Jan 8, 2012
If upsizing definately if downsizing it will depend on the one your selling.
0 votes Thank Flag Link Sun Jan 8, 2012
Hi Racikj, yes, studies how that you can do better to sell low and buy low as opposed to trying to wait out the market. I am currently working with another couple in a similar situation. I am very familiar with the Lansdale area/market and would be happy to meet with you for a free consultation. Please let me know either way.

Best of luck,

Eric Axelson, Associate Broker
Licensed in NJ and PA
Kurfiss Sotheby's International Realty
215.735.2225 o
856.617.1212 m
Web Reference:
0 votes Thank Flag Link Sun Jan 8, 2012
What is your situation? If you have tremendous equity in your current home, if you bought it many years ago and the value has increased, if you have outgrown your current market and need more space, if you need to move up (or move down), then yes, it may be a good time for you to buy for reasons touted by many

Interest rates are historically the lowest they've been in 40 years
Home prices have come down considerably from their peak in the mid 2000s

Good luck!
0 votes Thank Flag Link Sun Jan 8, 2012
It depends why you want to buy/sell. If you're looking to buy a more expensive house you should do better financially. But it depends on many factors and each situation is different. Many homes are selling in today's market and for more than the owners paid. You should consult with a local agent to determine the true value of your home and what is on the market for you to buy. This will help you determine if it's a good idea for you to sell and buy.
0 votes Thank Flag Link Sun Jan 8, 2012
Hi Racikj,

We recently worked with a young couple who needed a larger house because of their growing family. We found them a great home and sold their home. Their new mortgage is actually $50 less than it was with the smaller home! This is just one example of someone who benefitted from the current lower home prices and historically low interest rates. If you need help deciding if this market would benefit you, don't hesitate to ask me.


Lorri Paster
0 votes Thank Flag Link Sun Jan 8, 2012
Yes...leverage. If you sell your current home now and purchase a larger home, you will be in great shape in this market. The reason is, we all know real estate will go up in value; it always does and always will. So let's say you sell your $200,000 home now and buy a $400,000 home. Now the market recovers and prices increase 10% across the board. Instead of having $20,000 worth of equity, you know have $40,000. Not to mention, you will be locking in a 30year fixed rate at all time lows, just an added bonus! Numbers wise, it works. One thing I cannot answer for you is the emotional side, do you want to move? That is always your decision. Good luck!
0 votes Thank Flag Link Sun Jan 8, 2012
It's actually a great time to buy - particularly if you want to go bigger or move closer to work or need a more workable space. With the rates being so low, you can probably get a home that is newer or larger for less than you're paying now. Of course, there's lots of variables that will make this statement more or less true. Many Realtors will provide a free consultation and can review your own circumstances. If you are unsure, that is the best way to go - review all your options and make a decision that is best for you - not your friend or neighbor or family member.
0 votes Thank Flag Link Sun Jan 8, 2012
If you need to downsize/upsize, etc., no reason not to consider the idea...
0 votes Thank Flag Link Sun Jan 8, 2012
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