One concern I have been hearing a lot from clients is they would like to move (or need to due to a job transition), however, the recent economic challenges have not been kind to the equity they have in their home – and they are concerned they won’t even break even on the sale.
Their concerns are valid, but when we really look at the numbers, and our “right-now market”, they realize that all the bad news they have been hearing about the real estate market doesn’t apply as much as they thought it would. Although some people are indeed “upside down” on their mortgage – meaning they owe more than the market will pay for their home at the moment- in many cases although they won’t necessarily be making a profit on the sale of their house, they will at least break even.
The lesson for my clients is two-fold:
- Don’t always believe everything you read and hear about how lousy our current market is. The news is always based on generalities.
- Price your home so that it will sell. Overpricing your home, simply because you can’t stomach the idea of not making a profit on such a large investment, only hurts you in the long run.
Breaking even on the sale of your home may allow you to buy a bigger home, or smaller one, that fits your needs better. And it most likely will be at a lower interest rate too.
To know about the specifics on your home, sent me an email or give me a call: firstname.lastname@example.org or 425-870-3657