Waiting to Sell in Spring???? That’ll COST ya!
Every where we look we are being told it’s a bad real estate market….but what does that mean? Is it bad for everyone or just some? In any market there are “winners”, people who consider it a VERY GOOD market… this market is no different.
Who are the WINNERS? Well in a word…..buyers. However; SELLERS; can also win…and win BIG….let me explain.
With some very simple math we can see just how powerful this market can be in creating wealth….let’s say you own a home that’s valued at $200,000 and you’re thinking about selling it and buying you’re next, bigger and consequently more expensive home…Would you be crazy if you were excited about this market? No! And here’s why…this may very well be the best time you will EVER experience to buy you’re next home, ever….talk about a perfect housing “storm”!
Before I get too excited let me get back to the example..ok, $200,000 home and you’re to upgrade to a beautiful, spacious $450,000 home . With this being a “bad” market and all, let’s say it’s down 15%….so the $200,000 home will only sell for $170,000, Ouch….And that’s where most sellers STOP….and that’s a very EXPENSIVE mistake, because the “pot of gold” is in the purchase (as a buyer) of that beautiful new home that WAS worth $450,000.
That $450,000 home can be bought (using the same math…15% reduction in price) for $382,500! That’s a savings of $67,500….Sooo, what you have just done is created $37,500 ($67,000-$30,000) and you have the new, larger home.
Timing is everything!!! Sell now before the spring market hits…..why not wait?? Because you will have 2-3 times as much competition during the spring market and odds are, you’re home will be worth LESS!! (psst, you have about 3 weeks, so get crackin!!)
Moral of the story….focus on the WIN not the lose:-)