Many of you have probably been sitting on the sidelines waiting until the market is right. Whether you are looking for investment property or your next home, now is the time. Selection is outstanding, Sellers are beginning to get the message and interest rates are still, from a historical perspective, remarkably low.
No, Sellers are not giving properties away. But there are bargains to be had. And let’s say you are thinking of moving up. If your current home is worth $200,000 and you discount it 5% to sell it quickly you will sell it at $190,000 and “lose” $10,000. (Actually you probably gained more than that over time, just some of your gains have been erased.) Now you can go look for your next home. Most people purchase at 150% above what they just sold at. So in your case you are going to look for a $300,000 home. In this market, to sell it, they will need to do what you did. Discount the house to some degree. At a 5% discount, You pick up the next house at $285,000. Or a $15,000 savings. Getting the picture?
I am not saying the market is so bad that you HAVE to discount to sell. There are, of course, other strategies. The point I am trying to make, however, is that if you are willing to give a little, you could get a little more back. Think it over.