Don't Let Your House Stop Your Move

Are you stuck in a house that is stopping a big move for you and your family? Recently, I have met with several homeowners in Tallahassee who want to sell a home so that they can relocate to a different market area, but they are either upside down in their home, or they will not get enough proceeds for them to buy a home in their next market. So what should they do?

Using a traditional mindset of waiting for the market to recover seems to make sense at first glance, but most homeowners who have waited only found that the problem has been compounded. The real estate graph below demonstrates this all too clearly.

This graph answers the question "Should I wait to sell my home?" for each year going back to 1992. For the first 15 years, a homeowner who waited was able to get more money for their home the next year 14 out of 15 times. But recently, that has not been the case. With our current housing supply and demand imbalance, the wait is likely to be 7 more years!

Good News For Homeowners Who Want To Sell

The key to making the right choice when stuck in a house is to examine your motivation for moving. If you really want to move, there are solutions available. Let's consider two scenarios:

• You Own The House (Little Or No Mortgage) - A homeowner who just isn't going to get the amount of money they need to buy a home should consider the fact that it is going to take years for the market to recover. They can wait it out in their current home, or they can sell their home, and then move to where they want to live and "wait it out" there. Whether renting or buying in the next market, they do not need to be trapped in Tallahassee if they really want to be somewhere else. By purchasing a home in the new market, they will "recover" the same there as they could in Tallahassee.
• You Own The House (Upside Down In Mortgage) - Too many homeowners believe if they sell their house now, they will lose money. The fact is,  all of us have already lost the money. Something bad has ALREADY HAPPENED! The only question is what are you going to do about it? Here is the way I encourage homeowners to consider their current situation. Think of your mortgage as not one mortgage, but two. The first mortgage can be repaid when the home is sold, the second mortgage is "leftover" after the sale and will not be repaid right away. If you really want to be somewhere else, take that mortgage with you. You are not losing money by making the move, that money has already been lost. Your real consideration is where do you want to be as you recover from this terrible housing market.

There are ways to negotiate your way to the new area in which you want to live. Don't think that an upside down home mortgage situation, or a position of limited cash, should stop you from living where you want to live. We have helped people who thought they were stuck in a house make the move and they are now recovering from this horrible housing market and living in the city where they want to live.

If you are stuck in a house, then drop me a note and I will gladly review your situation with you. By getting a clearer picture of your options, you just might find the solutions that others have utilized will get you on your way.