Up-sizing your home in a Down Market - Why the best time!

By
Real Estate Agent with Powered by: Keller Williams Realty

 

Why wait to upgrade to a larger home? There is no better time. 

 

Visiting a potential client, today, we discussed their plans, and whether the time was right for a move. 

First we discussed the purpose of the move to determine if the move is necessary,   the answer was no.

But the key for this couple, and of course many others is whether now is a good time financially. 

First question that surfaces can we sell our home.  Answer, of course, homes are selling, but only the homes priced competitively and staged well.

We ran some numbers to demonstrate how a move could look, both now and in 3-5 years time, or when homes have increased by 15%.


 

Sale Price $

Loan/equity($k)

interest

Payment $/mo

Sale now

175,000

120/40

6.25%

1040

Buy now

250,000

210/40

3.5%

943*

Sell 3-5 yrs (15%increase)

200,000

110/75

 

 

Buy 3-5 yrs

290,000

215/75

6.25%

1323**

Assume:  interest rates and prices go up from where they areSearch all area homes for sale Madison Wi

 


The scenario is just an illustration of someone buying up about 40% larger home- this is quite typical. 


*the monthly payment – just mortgage – if a move was made now would be $943, actually lower than current payment.

** if move is delayed till home prices return, payment will be $1323 for the very same home.  Interest rates will be higher too.


Final point to make.   You will need to sell your home at a cut price, in order to take advantage of a cut price home.   


Does this give you an incentive for moving your family now? 


Search all area homes for sale Madison Wi

 

first posted http://wi-realestateguy.blogspot.com/2011/12/upsize-your-home-now-there-is-no-better.html

Posted by

Guy Lofts CRS,  is a long-term area resident who has been helping people make sound housing decisions since 1993.  Guy is a past president of the Wisconsin Chapter of CRS, the Certified Residential Specialists.  He has been a top agent in the office for 8 years and leader in technology, having had his first personalized web page in 1995.  With a first Blog in 2006, Guy is a leader in the Wisconsin Blogging community. Guy has provided training with in his office and is to present a training at this years Wisconsin Realtor convention.

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Topic:
Home Selling
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Wisconsin Dane County
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Tags:
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upsizing your home
buying a larger home
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upsizing your home in a down market trading up

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Rainmaker
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Tim Lorenz
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TIM LORENZ of Keller Williams Realty

You are right now is the best time to up size your home.

December 29, 2011 12:33 AM
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Michelle Carr-Crowe Just Call 408-252-8900 Luxury Homes in Top Silicon Valley Schools-San Jose, Cupertino, Saratoga & Palo Alto
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Good points, I remind move up/move down clients they just need to figure out which one gives them the biggest benefit.

December 29, 2011 12:44 AM
Ambassador
1,041,731
Michelle Carr-Crowe Just Call 408-252-8900 Luxury Homes in Top Silicon Valley Schools-San Jose, Cupertino, Saratoga & Palo Alto
Family Helping Families Buy & Sell Homes 40+ Years
Just Call 408-252-8900 Lynbrook Homes Cupertino KW

FYI, although the analysis often financial-based, often health, job, school and commute outweigh the money benefit.

December 29, 2011 12:52 AM
Rainer
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Deven teaches Investing for Realtors. Up to 42X your commission with less work
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Thanks for sharing. Looks like now is the best time to up size your home. Best of luck to you in 2012!

December 29, 2011 01:30 AM
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