If you are a move-up Buyer, then your $400-500,000 priced home will appreciate higher than your $100,000-200,000 house that you are going to sell.
5% appreciation on $200,000 is $10,000 or $210,000 if you sell next year.
However, the one you will buy:
5% appreciation on $400,000 is $20,000 or $420,000
You have a net gain of $10,000 if you decide to purchase this year vs. waiting until next year and losing $10,000 when you pay $420,000.
Take these numbers and play with your personal situation and see how the numbers work for you. It is usually wise to seize the day now rather than waiting - and let's not forget interest rates. They could be considerably higher next year.
Hope this is helpful.
Sharon H. Alters, GRI
Coldwell Banker Vanguard
important question, the next step then is to find out the real honest market value of the property, what
will it most likely sell for......
And there is no crystal bowl that can predict the appreciation within only one year.... what is the seller
going to do when the home is sold, buy another one? Sell for a little less buy for a little less, sell for
a little more, buy for a little more, or a lot more, still and then the question comes in is the current owner
upgrading to a much larger home, or downgrading to a much smaller home?
Not an easy question to just answer with yes or no.
Good Luck to you
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