Think now is not the time to move up? Think again!
Are you a homeowner who'd like to move up, but are concerned that you'll lose money on your present home in today's real estate market? Consider this: Today's market actually offers a unique opportunity for you to acquire more home than you might imagine!
With prices generally off their peak of several years ago, that $500,000 you planned spend will actually buy much more house than it would have just a short while ago. On top of that, today's historically low mortgage interest rates stretch your buying power even further. Six months to a year from now, if interest rates rise by 1%, as many think they will, your buying power will be reduced by approximately 10%.
Also, don't overlook the fact that today's inventory of available homes in all price ranges, styles and locations, while beginning to decline, is still at an unprecedented high level. This means it's never been easier to find the home of your dreams. And right now, you, the buyer, are in the driver's seat at the negotiating table.
Of course, it's also quite likely that you won't get as much for your present home as you would have at the market peak of a few years ago. But any "give back" you experience in selling will usually be more than offset by the added value you receive when moving up. Further, as the economy continues to rebound, the real estate market will continue to stabilize and home values will subsequently appreciate. As that happens, your equity gain on the bigger house will typically be greater than on your present home. According to the National Association of Realtors®, home values have, on average, doubled every ten years. That means that the equity gain on a $500,000 property in that period of time will exceed that of a $300,000 property by $200,000.
The bottom line is that, while today's market conditions make it harder--or even impossible-- for some to move up, opportunities abound for many who are in a position to cash in on the timing advantage that currently exists and will not likely exist again in the foreseeable future.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
With prices generally off their peak of several years ago, that $500,000 you planned spend will actually buy much more house than it would have just a short while ago. On top of that, today's historically low mortgage interest rates stretch your buying power even further. Six months to a year from now, if interest rates rise by 1%, as many think they will, your buying power will be reduced by approximately 10%.
Also, don't overlook the fact that today's inventory of available homes in all price ranges, styles and locations, while beginning to decline, is still at an unprecedented high level. This means it's never been easier to find the home of your dreams. And right now, you, the buyer, are in the driver's seat at the negotiating table.
Of course, it's also quite likely that you won't get as much for your present home as you would have at the market peak of a few years ago. But any "give back" you experience in selling will usually be more than offset by the added value you receive when moving up. Further, as the economy continues to rebound, the real estate market will continue to stabilize and home values will subsequently appreciate. As that happens, your equity gain on the bigger house will typically be greater than on your present home. According to the National Association of Realtors®, home values have, on average, doubled every ten years. That means that the equity gain on a $500,000 property in that period of time will exceed that of a $300,000 property by $200,000.
The bottom line is that, while today's market conditions make it harder--or even impossible-- for some to move up, opportunities abound for many who are in a position to cash in on the timing advantage that currently exists and will not likely exist again in the foreseeable future.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
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