Mar
5
Let’s Talk – Trading Up
Posted by josm293 under Everyone, For Buyers, For Realty Professionals, For Sellers, General Information, RealEstate
Everyone wants to talk about the negative aspects of the present œdown real estate market that we are experiencing. But there is at least one group of homeowners that could really benefit form these circumstances¦ those wishing to œtrade up. Trading up is the process of selling the house that you are currently living in with the intention of purchasing a larger, nicer, or more feature-rich home. This scenario may be possible if you fit into one of two categories: 1) You own your home mortgage-free or have adequate equity to roll into the down-payment on your next home, or 2) You have sufficient cash available to take a œloss on the sale of your current home and still have enough for a down-payment or cash purchase of your new home.
Consider this example: You live in a house that you paid $200,000 for 5 years ago. The market has declined an average of 20% over that time period leaving the current market value at $160,000. Your ideal home is a house valued at $400,000 5 years ago that is now worth $320,000. By purchasing your ideal home now, you have saved $40,000 even after selling your house at a $40,000 œloss.
In addition, as the market resumes its (average historical) 4% annual appreciation, your $320,000 home will increase in value by $12,800 per year whereas your $160,000 house will appreciate by only $6,400 per year (you make $6,400 more per year than if you stay where you are).
Of course, there are qualifying parameters that you must consider if you require a mortgage, but isn™t it worth checking into this option for a profit of $46,400 the first year?
Let™s talk¦ about your true needs and wishes. I™d love to assist you to œDiscover YOUR New World of home, health, and wealth.

Comments (0)