It's All About Timing

There’s no sense trying to avoid the fact that we live in pretty turbulent times. A lot of homeowners are sitting on mortgages that are larger than the current value of their homes, and the sputtering economy is keeping many others, especially those struggling to keep jobs, from becoming home owners. But the fact remains, despite any scary headlines you may see or hear in the media, that homes are more affordable now than they’ve been in a long, long time, and the record low mortgage rates are only the cherry on top of the sundae.

This especially holds true for you homeowners who are thinking of trading up in the housing market, whether you’re looking for more space, or simply a better zip code. If you’ve owned your home for a while, you may be hesitant to step up, because the value of your current home is not what it was a few years ago. But guess what? More likely than not, neither is the home you’re thinking about buying!

Let’s crunch some numbers.
Let’s say your current home is worth 200-thousand dollars, but you are hesitant to trade up because three years ago, your home was worth 20 percent more, or 240-thousand dollars. You don’t want to lose the value you once had, and that’s understandable.

But let’s take a look at the house that you’ve had your eye on… the one with the 300-thousand dollar price tag. Three years ago, that home was also worth 20 percent more, or 360-thousand dollars.
Now, let’s put this in perspective. If you had done this deal three years ago, your trade-up, the price difference between your current and new homes, would have cost you 120-thousand dollars. By making that same deal today, even though the value of both homes has dropped, your trade up cost is100-thousand dollars, or 20-thousand dollars less than it would have been three years ago. Yes, values may be lower than they were before the financial crisis, but if you make the leap, your costs will be lower as well.

As they say, timing is everything. Sooner or later, mortgage rates will go up again, and when they do, this unique opportunity will be gone.

No one likes to suffer a loss on an investment, but at the very least, it merits a conversation with The Tim Sova Team. We are seasoned professionals that know the local market and we will help you make reasoned and informed real estate decisions.

Feel free to reach us any time….we are happy to help!
The Tim Sova Team

Tim Sova, Associate Broker/Listing Specialist
Brittani Simone, Realtor/Buyer Specialist
Colleen Sova, Client Care Specialist

Source: reprinted in part from Real Estate Today