 |
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
||||||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
||||
 |
 |
 |
|
||||||||||
 |
 |
 |
|
||||||||||
 |
 |
 |
 |
 |
|
||||||||
 |
|
||||||||||||
Good bad news
Why a slow market could be great time to move up
by Pat Zaby For sellers who plan to move up to a house in the same area where they already own a home, a slow market may actually be to their advantage. Even though they may have to sell at a discounted rate, they will most likely buy at essentially the same discounted rate. Since they will be buying a more expensive home, the net result tips in their favor.
A simplified look at the numbers illustrates the point: If the old house was worth $200,000 and the sellers now have to take a 10% reduction, that amounts to $20,000 less than they thought they would receive.
But if they buy a home that was worth $300,000 that they can now get for 10% less, they will save $30,000 they expected they would have to pay. They’ll actually see about a $10,000 profit.
Now, in a "good" market, if the sellers sold their home for an amount 10% higher than they thought it was worth, they’d get $20,000 more, but they would probably pay $30,000 more for the move-up home.
Though the example may not hold true for every set of circumstances, much of the time, a slow market actually should be considered an excellent opportunity for people wanting to move up. Combine this fact with the lowest interest rates we are likely to see for quite some time, and a person who plans to sell and buy a larger home in the next few years might save money by acting now.
Pat Zaby, CCIM, CRB, CRS, is a nationally known author, software developer, and real estate speaker. For information, visit PatZaby.com.
Photo © Eyewire.
home current issue top 10 resources
Buyers & sellers,
visit www.texasrealestate.com.
REALTORS®, visit www.texasrealtors.com.
