The other day one of my past customers asked me “Heidi, John and I have been discussing the possibility of selling our house. Our present one is feeling awfully crowded since the birth of our baby boy, but we are both worried about declining values and the length of time it may take to sell, what do you think, is it a good time to sell and purchase another house or not?”
Actually, it is a great time to sell your house and purchase another. Here’s why…..It sounds like you will be moving up to a larger, more expensive house which presents an opportunity you may not have thought about.
Let’s say your current house will sell for approximately $200,000 based on today’s values. That is about 10% less than what it would have sold for last year. Your next house will cost about $300,000 and it also suffers from a 10% loss in value. Now….10% of $200,000 is $20,000 whereas 10% of $300,000 is $30,000. In this sell and buy transaction you will lose approximately $20,000 but the seller of the house you are buying is losing $30,000, which means you actually realize a $10,000 gain on your purchase, making your actual loss only $10,000.
When the market recovers, you could realize a $30,000 gain on the house you purchased which could be considered instant equity in your new home.
In addition, at this time interest rates are very, very favorable, but expected to rise within the near future. The rate you receive today will most likely result in a payment that could be $200 - $300 less than what it will be this time next year.
Hines & Associates Realty…..Our HINEsight is always 20/20!
And here is your morning coffee...
INSPIRATION FOR TODAY:
"Lose this day loitering - 'twill be the same story
To-morrow - and the next more dilatory;
Each indecision brings its own delays,
And days are lost lamenting o'er lost days.
Are you in earnest? seize this very minute -
Boldness has genius, power and magic in it.
Only engage, and then the mind grows heated -
Begin it, and then the work will be completed!"
- Johann Wolfgang von Goethe
ENGAGE IT!
Ever driven a car? Of course you have, but what makes it move?
You enter a car with a standard transmission, place it in neutral, and start the engine. It idles - waiting for what? The engine is running, but you are going nowhere. What must be done to get to your destination?
Your vehicle is like your mind and body. Goethe says, "Are you in earnest? . . . Boldness has genius, power and magic in it." He questions whether you are in earnest . . . calls attention to the fact that there is genius, power and magic in boldness. It's like your vehicle idling in neutral. It has the power to take you wherever you want to go . . . yet is goes nowhere - until what happens?
"Only engage," urges Goethe. The only thing keeping you from moving is your willingness to engage. Place the transmission in first gear, and what happens? You begin moving - slowly at first. Moving the gearshift into 2nd, your movement speeds up. As it does, you are soon in 3rd, and well on the way to your destination.
Goethe speaks of achieving your objectives in life: "Only engage, and then the mind grows heated . . . ." In other words, put your life in gear - get started - get moving! When you do . . . when your "mind grows heated" . . . that which you desire to achieve will be attracted to you.
So - what do you say? Are you in earnest?