Move-up buyers can increase their wealth by taking advantage of the current Triangle homes market. Many homeowners who don’t need to sell in this market are choosing to sit it out. Fearful that their homes will sell for less than they would have three years ago, many homeowners are missing the opportunity presented by the current real estate market. It’s only natural that a homeowner will focus on the loss in home prices compared with recent years, but “move-up” buyers need to focus on the importance of buying now in order to have a long-term positive impact on their net worth.
Home Price = $300,000
Sell at $270,000 = $30,000 less
Home Price = $500,000
Buy at $450,000 = $50,000 savings
The smaller loss at sale will be compensated by greater savings at purchase, resulting in a significant net gain. The example above assumes a 10% drop in the home market at both levels. In fact, in the Triangle Market the advantage may be even greater because the prices of lower-priced homes seem to be holding while the higher priced homes continue to go down in list price.
Smart homeowners are taking advantage of this market to “step-up” their housing, some of my clients are. When you buy a better home under the current market conditions, you are saving more on the purchase than you lost on the sale of your previous home and your new home is of often better positioned for appreciation when the market rebounds. If you take the example above and assume that the homes appreciate 10% in value, the first home gains $27,000, while the second gains $45,000. This can add significantly to your net worth when the market rebounds which it will.
Let the Keelan Realty Group show you how to take advantage of the current market conditions call us at 919-453-5064 today! Visit us on the web at www.AllenTate.com/JulieKeelan to view listings in the Triangle.
Home Price = $300,000
Sell at $270,000 = $30,000 less
Home Price = $500,000
Buy at $450,000 = $50,000 savings
The smaller loss at sale will be compensated by greater savings at purchase, resulting in a significant net gain. The example above assumes a 10% drop in the home market at both levels. In fact, in the Triangle Market the advantage may be even greater because the prices of lower-priced homes seem to be holding while the higher priced homes continue to go down in list price.
Smart homeowners are taking advantage of this market to “step-up” their housing, some of my clients are. When you buy a better home under the current market conditions, you are saving more on the purchase than you lost on the sale of your previous home and your new home is of often better positioned for appreciation when the market rebounds. If you take the example above and assume that the homes appreciate 10% in value, the first home gains $27,000, while the second gains $45,000. This can add significantly to your net worth when the market rebounds which it will.
Let the Keelan Realty Group show you how to take advantage of the current market conditions call us at 919-453-5064 today! Visit us on the web at www.AllenTate.com/JulieKeelan to view listings in the Triangle.
