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The Tall Guy Team
SELL LOW AND SAVE MONEY!
The recurring theme I hear is that sellers want to wait until prices are higher before selling their home. Makes sense right? But does it? The biggest risk in waiting is interest rates. Let's look at an example why it may be in your best interest to make a move while rates are still at historic lows.
Sell Now: If you owe $300,000 and the current market value is $400,000, then after selling costs you will net approximately $72,000. If you bought a larger home today for $500,000 and put the entire $72,000 down then your payment would be approximately $2690/mo. (principle and interest) assuming an interest rate of 6.5%.
Sell Later: If you wait until prices rise 10% then you will sell for $440,000, then after selling costs you will net approximately $109,200. The same larger home (which has also appreciated 10%) would now be selling for $550,000. We will also assume rates have returned to a more normal 7.5% interest rate. If you again put the entire $109,200 down then your payment would be $3063 (principle and interest).
Conclusion: In the above example, by waiting for the market to get better, your payment for the larger home went from $2690 to $3063 assuming only a 1% increase in rates! This is an increase of $373/mo by waiting!
If you are considering selling, call me now so we can discuss your specific needs and see if selling now might be your best move. 951-693-4663
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