Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you?
Consider the "Savings" on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000. So you "lost" $30,000 on the sale of your home. But you "made" $50,000 on the purchase of your new home. Doesn't that put you $20,000 ahead?
Don't Forget the Impact of Interest Rates--Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
â€¢ Each 1/2 point decrease in your interest rate gives you $25,000 more in purchasing power.
â€¢ Each 1 point decrease in your interest rate gives you $50,000 more in purchasing power.
â€¢ Each 2 point decrease in your interest rate gives you $100,000 more in purchasing power
You can get real estate in nice areas for prices that we havenâ€™t seen in a decade. So what if you take a little less for your current house. In 3-5 years when the market has fully rebounded youâ€™ll have twice as much equity in the new house as you would ever have been able to build in the old house
Simply put it is the best time to buy a house anywhere, period! All the turmoil in Greece has caused foreign investors to invest in the US, causing mortgages rates to dip even lower. The inventory in Philadelphia is at an all time high which equals a BUYERS market. Buying now could save you hundreds off your monthly mortgage and tens of thousands off the entire mortgaged price of your home. As always feel free to use my website with a free up to the minute home search and the free e Book "Buyers Secrets". Use the link below. Contact me directly if I maybe of any more assistance.
Happy House Hunting!
Robert A. Martini
Keller Williams Real Estate
If you are also selling, then anytime would be good. There's no advantage or disadvantage to selling one property and buying another similar property elsewhere. If your home is worth a lot, so will the property you buying, and if it is worth less, so will the new one be.
I hope that helps.
Terrence Charest, e-Pro
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090