Market Conditions in 44060>Question Details

Chris, Other/Just Looking in Mentor, OH

Looking to upgrade... Is now a good time given the current market conditions?

Asked by Chris, Mentor, OH Fri Aug 22, 2008

Hi...we've outgrown our current ranch style home we've been in for the past ten year and are looking to upgrade. We've made many updates to the home including updated kitchen, finished basement, updated bathrooms, new lawn, etc. and really don't want to dump anymore money into the home. We originally thought we would be here at least three to five more years as recently as last April otherwise I wouldn't have redone the entire lawn! Many more homes appear to coming into our price range, however, I don't like the idea of potentially having two mortgages on my hands. Given the amount and cost of upgrades, I would just happy to break even, but I' doubt I'll even be able to do that. I've seen recently comps in our neighborhood, but I'm not sure how to estimate the value of our home given the upgrades we made in comparison with recent sales. Sorry for rambling, but I'm not sure whether to wait this one out a little more or take advantage of current opportunities.

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15
Hi Chris,
Jusr read Bill's answer about buying your new home. Some where along the way people got hung up about this idea of your home being an "INVESTMENT". Well, to some extent, this is true. Over the years, real estate has been a hedge.
Recently, real estate was the latest quick runup-similiar to the "dot.com"in late 1990's & the subsequent bust of 2000. Part of the reason for the mess that we are in, is that people have taken the equity out of their homes already by refinancing them or encumbering them through home equity loans and /or lines of credit.

First & foremost, your home is the refuge for you & your family to have a safe, secure & comfortable place to find your hang your hat.
From what you have stated, you have simply outrgrown the home that you are in now. It sounds like its time to get it up & sold so that you & your growing family can find that new home that you need. That is where you need to put your emphasis. Can you be checking out other house to get a better idea of what you like & don't like, what you can afford & whaich areas are the most attractive to you? ABSOLUTELY!! Do all of the looking around, If you are not in a position to be facing 2 mortgage--DON"T BUY THE NEXT HOME UNTIL YOU HAVE A DEAL LINED UP ON YOUR HOUSE.
A competent Realtor can often times co-ordinate the closing dates of properties to make things work for both parties to benefit. Sometimes, its not easy!
Again, I suggest that you a reasonable idea of what you house will sell at in todays's market & what you could expect to put in your pocket when all is said & done.
Please give me a call at 440-487-2193 or at jwirsing@kw.com
2 votes Thank Flag Link Sun Aug 24, 2008
Hi Chris,
The present market conditions are a great assist to STEP-UP buyers like you.
It sounds like you have realized that your home may not yield as musc on the market today as it may have 12 months ago. That is unfortunate. But, you can make this market WORK FOR YOU!
The nice part is that the home you may be buying has most likely also lost value over 12 months ago. Often, the more expensive that home is means that it has lost more dollars than a less expensive home.
You may find that you can now buy a home that 12 or 18 months ago was out of your price range.
I have lived in the Lake & Geauga markets for the past 30 years. I grew up in Wickliffe. So, I am familiar with the area.
If you would like, please call me at 440-487-2193 or e-mail me at jwirsing@kw.com. I would be happy to give you a FREE market analysis of what homes similiar to yours are selling for, (not what theya re listed at) and an estimate of your net proceeds.
I also have a "Round trip Loyalty Bonus" for people who list a home with me & then buy their next one using me as their Realtor.
Look forard to hearing from you.
1 vote Thank Flag Link Fri Aug 22, 2008
Have you sold yet? Would you like a local top producing team to take a look at your current home?
0 votes Thank Flag Link Mon Feb 16, 2015
If you are looking to MOVE UP, it is a GREAT time. Its a sellers market and interest rates are low. They are predicted to go up 1-2% this year so that would be almost 120 extra per month on a 250,000 loan amount. check out keeping current matters dot com. Has a TON of resources for buyers and sellers regarding the market.
0 votes Thank Flag Link Thu Jun 5, 2014
My name is Jeffrey Carducci , and I am an Agent with, The Michael Kaim Team.

Why is a great time to buy?

The interest rates have fallen 0.5% and that gives you more buying power.
According to Key Bank’s latest mortgage rate information, the 30-year fixed conventional home loan is up for grabs at a rate of 4.460% and the corresponding APR stands at 4.533%. The shorter-term, 15-year version of this fixed home purchase loan is listed at 3.625% and an APR variable of 3.747% as of Thursday.

What does this mean for you?
Example:
If you make $75,000
With interest rates at 5% you can afford a $ 322,000 Mortgage at $2000 a month.
With interest rates at 4.5% you can afford a $ 338,000 Mortgage at $2000 a month.
MORE BUYING POWER=The Home you Want!
Lower Interest Rates=More Buying Power For YOU!

If you or anyone you know is looking to buy or sell a home,
Contact Me so I can show you how easy it can be.

Thank you for allowing me to be, Your Family Realtor,

Contact me@ jeffcarducci@gmail.com
0 votes Thank Flag Link Fri Oct 4, 2013
Hi Chris-
I think I still have my info on the CMA in your neighborhood from when we got together back in 2008.
You have a nice house that shows the care and pride that you & your wife have had in improving it the way that you have.
Please give me a call at 440-487-2193 or shoot me an email at John@CallRealtorJohn.com.
John Wirsing
e-PRO Realtor
RE/MAX Premiere Properties
0 votes Thank Flag Link Thu Mar 11, 2010
Chris, have you considered adding on to your house? You would have to run the costs of moving verses adding on but that would give you a chance to keep your nice neighborhood and neighbors. I know there will also be zoning considerations. It was just an idea that could give you another option that might work for you. Sometimes adding on is the better decision. Sometimes moving is. I just wanted you to consider the option in case you had not thought of it before.
0 votes Thank Flag Link Thu Mar 11, 2010
Well.....Actually we are still in the same house and on the verge of putting it on the market (I think). Got all the financing etc. lined up and pre-approved for the move-up. Didn't do anything due to the recession-- had layoffs and furloughs going on at work and it was too dicey to take that kind of risk at the time. Things are back normal now so now the opportunity presents itself again. It would be nice if the fed would extend the buyback of mbs to keep the rates down till the end of the year to give us a little more time to find a move up that suits us, but I don't see it happening. It's still going to be tough to sell in this environment still ( a neighbor across the street has had their house on the market since November). It's also a tough decision since we really like our current neighborhood and neighbors. We've just outgrown this house and it's time to move on. I'm just afraid we'll never seen an opportunity in lifetime again with the way rates and prices are right now. We'll see what happens...
0 votes Thank Flag Link Thu Mar 11, 2010
almost a 2 year old question, what did you do? Did you sell at a loss before you lost even more value or are you still there?
0 votes Thank Flag Link Thu Mar 11, 2010
Hi Chris,

I'm a Realtor right here in Mentor and would be able to run comparables for you. We can look at trends that are currently happening in todays market right down to the street you live on. Feel free to contact me at carriefath@gmail.com or (440) 339-9461. I have a lot of information I can share with you.
0 votes Thank Flag Link Thu Mar 11, 2010
Chris: Bid um or hold um — the age old question. Agents Brooke, David and both John’s have given you valid answers. And the home seller in Akron makes a very VALID point. But, this is NOT rocket science. You know, we all know, that 2004-2005 were the hottest years in real estate. According to national home sales statistics. Some argue that the value of homes was “run-up” by a real estate market run amuck during this period. Maybe so. Given what all of us can read in any newspaper or magazine, one could certainly make that point. But, the real estate market, like commodities, food, securities, computing, oil, gas, etc all seem to follow a cyclical path. If we could accurately measure the timing for ups and downs in each, we would all be rich.

So first, let’s look at this philosophically. What do they say in the securities business — “buy low, sell high”. You would accept that. We all can. Making that happen is the trick. Generally speaking, we are in a miserable market — if you are a seller. If you are a buyer, we are in a great market. Or, to say it another way, it is a “buyer’s market”. That is an economic FACT, not the opinion of a group of individuals with a vested interest.

Second, let’s look at this logically. If you sell, you will probably get less for your home then in a seller’s market. Not much to argue with there. And if you can buy a home for much less than what it might sell for in a seller’s market, you are ahead of the game. Maybe way ahead. But, YOU have to do both — sell and buy. Nuts. Guess we would have to measure TIMING as a DUD or VIRTUE by the net result of the sale and purchase.

Ah, but there are other factors which “just looking Bill” has failed to consider. Interest rates are going UP because of inflation. So, if you waited to sell for a BETTER market (as you and the newspaper industry might term it), and the net result of your delayed “sell-buy decision” proved to be better, the ODDS are you will have to pay more interest on your loan. Maybe a half point or even more. Google “Mortgage loan interest rate projections”. Then, how would that decision (HOLD them) look if you could not pay cash for the home today. Now, the Akron home buyer’s comments are certainly worth looking at closely. The length of time to sell a home (dependent upon the area) has doubled and tripled. Now it takes 120 days on average in our area (it is a price sensitive market) compared to 30 or 60 days in 2005 and 2006. Frankly, it is easier to buy a home then it is to sell.

So, put your home on the market and look for homes at the same time. If you chose to make an offer before your home sells, make your offer CONTINGENT upon the sale of your property. Hedge your bet. Sellers are taking contingent offers right and left today.

To conclude, I spent 34 years in the corporate world — only 9 in real estate. “Buy low, sell high” is not a saying that is unique to real estate. Do your agree? I am providing you with 2 links to the MEDIAN PRICE of homes (sales and appreciation) from 1968 forward (national statistics — real numbers). If you think that BILL has a valid point, try justifying in your own mind how 39 years of US home sales data could support his position (“…..whatever home you buy now, will be worth less in 5 years”). Bill needs to do his homework.

Copy & paste links below:

http://www.scribd.com/doc/3675699/US-National-Association-of…

http://www.scribd.com/doc/3675696/US-National-Association-of…
0 votes Thank Flag Link Sun Aug 24, 2008
Chris,

Take this for what it is worth. Like you, we decided it was time to upgrade. We found a new home we really liked at a very good price and bought. Now we are trying to sell our "former" (I say former with tongue in check) home. We are now paying two mortgages. Fortunately, we can aford this for a period of time.
If I was to do it over, I would sell my "former" home before even looking for a new home. as this is a buyers market and there are plenty of homes out there. I'm sure we could have found another "dream home" (probaly at even a better price) and we wouldn't be paying two mortgages and worrying about when we will sell the "former" house.
0 votes Thank Flag Link Sun Aug 24, 2008
I will be the lone person to tell you to not buy ANY home right now. The real estate pro's are always going to tell you that now is the time to buy. They don't have a job otherwise. You need to look at the current market and where it is headed, which is down. Whatever home you buy now, will be worth less in 5 years. We are in an economic time that has never before happened in our country. Do not believe the "experts" because they are the reason we are moments away from a full blown depression. The commercial real estate market is teetering and will more than likely collapse in the next 3-5 years as the speculation loans come due. The home market still has 5 more years of bad loans that will default made to people who should have never been given loan for house in the first place. That will continue to drive down home prices. The real estate professionals are very scared and rightfully so. There is nothing anyone can do to prevent the billions of dollars of defaults that are absolutely necessary to put the market back on a normal slow growth healthy tract. I hope I have helped you. Please research on your own as there is plenty of information written by economic professionals who are not well liked by the "Wall Street" establishment. Once you begin to read what these "renegades" have to say, it becomes very apparent why the "Wall Streeters" do not like to hear that the fraud they have committed is turning into paying the devil his due.
0 votes Thank Flag Link Fri Aug 22, 2008
If you have been there for over 10 years, your home has appreciated even in this buyers market. The problem is you will never have an opportunity like this for buying another home, maybe in our lifetime. The market is coming back and buyers are buying! You may save more than enough on your new home to make money even if you break even on this home. Call a good local Realtor and get their opinion on pricing and sales time for your current home. I know a couple of really good ones in your area if you need some help. Good Luck!
Web Reference: http://www.liveinakron.com
0 votes Thank Flag Link Fri Aug 22, 2008
You should get a professional appraisal or get a Realtor to do some CMA market data searches for you (Realtor will most likely be free!)...This should give you a start in the right direction...
0 votes Thank Flag Link Fri Aug 22, 2008
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