This is the best time in my adult lifetime to move up, to finally get out of that cramped, no storage, starter-home that you outgrew years back and get closer to your Dream Home. "How can that be?" you ask. "Aren't we in the middle of a recession?" Here's why:
1. Yes, you are exactly right that you may not get every penny you hoped for in the sale of your existing home. Even in San Antonio, Texas, where our local economy is strong and where homes have held value remarkably compared to the rest of the US, some neighborhoods are a little softer than others. There is a somewhat larger than normal inventory of homes and fewer qualified Buyers. So, of course, the pricing will get "competitive" for the ones that actually sell. In fact, in order to sell, your home has to be in top condition, staged to perfection, and priced right. Or it has to be a real fixer-upper at Fire-Sale prices - No exceptions. Those in the middle aren't moving anywhere in anyone's market.
2. Now the good news - The home you want to buy is even cheaper compared to the peak market than the one you are selling, so the difference between the two is probably much less than you thought. If you net $10,000 less than you expected on the sale of your smaller home, but save $30,000 on your step up home, tell me where that is a loss. And mortgage rates are still near historic lows, making every home more affordable.
3. Add this little detail: Uncle Sam is giving away a bonus of up to $8,000 TAX FREE CASH to just about anyone who hasn't owned a home in the last three years and buys a home before November 30, 2009. So, now, your little outgrown gem is really affordable to someone who will think it is paradise. First-Time Buyers are driving the low end of the market, and enabling Move Up Buyers to take the plunge with far less pain than I can recall. This incentive may disappear December 1, so, what are you waiting for?
Of course, the devil is always in the details, so make sure you have a sharp REALTOR® who knows how to maximize your benefit. You can always call us toll free for a no obligation discussion of your individual situation. We are here to help you.