Home Sellers Move-Up And Save Money
There are many sellers who have some equity in their homes who want to move up to a larger home or nicer neighborhood. These sellers do not want to sell at today’s low prices. It may be that their agent has not provided them with the whole picture of today’s market.Sellers need to take into consideration that although they may get a lower price than they want, the next home they purchase is also going to be at a low price, and they are going to be able to move up in size and value in a depreciated market. This means they actually have gained because they purchased a larger home in a more upscale area that should appreciate rapidly when the market starts to recover.
As an example, let’s say you own a 1300 square foot home in Killearn Acres that you bought for $175,000 in 2002, but is now valued at $125,000. You would like to move up to a 2000 square foot home in Killearn Estates. This home in 2002 was valued at $275,000, but today has a value of $200,000. Are you losing by selling your home at a low price and buying this one? No!
Both homes have gone down in value equally. You are able to get a larger home in a better neighborhood for a good price with low payments at today’s interest rates and tax values, and the potential for strong appreciation when the market recovers is excellent.
Sellers whose goal is to move up need to consider these factors before making any decisions pricing their property. We are in a declining market and have been for over 5 years. This trend will most likely continue for the next few years until the economy recovers. In order to move your property and not continue to lose value, you need to price it competitively. Failure to do so will only cost you more as the prices continue to decline. Ask your agent to give you comparable sales in the area for the last 6 months and tell him to price your property under these sales, not equal to them because you are in a declining market.