Time to TRADE UP!!! Calling all Investors AND SAVVY HOMEBUYERS…
You’ve heard us talk the last few weeks about how the market has SHIFTED (from a seller’s market to a buyer’s market). What that means for you is = PRICES ARE COMING DOWN.
The BEST time to buy is NOW while interest rates are still low. Interest rates are the unknown and can change overnight. It’s easy to “buy in” to the thought process that by waiting for prices to bottom out you’ll be getting the best deal, because you’ll buy a home at a discount. The reality is, if interest rates change even slightly while you are waiting, the “savings” on the price of the home will be completely offset by the increase in mortgage interest rates. If you wait too long and interest rates rise, you may find that your dream home is no longer affordable.
The graphic above explains how even a SLIGHT increase in mortgage interest rates can offset a significant drop in home prices. There is little to no gain in this scenario and much to lose if home prices rebound or rates jump.
Sellers, if you are thinking “Why would I sell now? Aren’t I losing….? I should have sold for last year at the top of the market.” While yes, you may be leaving a little money on the table by selling now compared to the market last year, or even a few months ago, HOWEVER, locally all home values are coming down, not just yours. Meaning, if you sell and buy in today’s market, you’ll be buying at a discount too! By selling now, EVEN IF IT MEANS A SMALL LOSS, you will be compensated by greater savings at purchase, RESULTING IN SIGNIFICANT NET GAIN! You’ll end up with a larger and better home and save more on the purchase than you lost on the sale, AND the new home is better positioned for appreciation when the market rebounds!
If we use these homes as an example, when the market rebounds (we know it will, real estate is cyclical), if the homes appreciate by 10%, the larger home would increase in value by $38,000 while the smaller home would only grow by $19,000.
By focusing on buying a greater value than what you are leaving behind, over time you are improving your net worth. On average over 60% of the average individual’s net worth is in their home.
The time for TRADING UP is now! Make the most of this market and consider Buying Up and improving your net worth at the same time!
Wondering what your home is worth in today’s market? Visit GuaranteedSaleNola.com today or call us at 985-778-2525.