Can We Afford a Bigger House?

The best way to get the answer to that question is to request a personal consultation with the Veenstra Team.  There is no charge for the consultation but you will learn:

  • The value of your home given current market conditions
  • The real estate market trends in your neighborhood and the greater community
  • The options that might be available to move in to
  • The costs involved in selling and buying

Should We Wait to Sell Our House Until We Can Get a Better Price?

It’s always better to trade up in a buyer’s market, like the one we are in now. While the value of your house may have gone down, the price of higher-end homes has also dropped. Let’s look at an example. What if your neighbor sold his house six months ago for $300,000. In today’s market, your home’s value has decreased 10 percent.  That means that at this point you could only get $270,000.  If you just stop here, you might think you’d be taking a $30,000 ‘loss’ on your home. But, let’s not forget that higher priced homes are also dropping in price. So, if we use the same example, the $500,000 home you’d like to move up to has also dropped 10 percent in value.  That means it now sells at $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000.On the other hand, if you waited to recoup the 10 percent value loss on your home and sold it at $300,000, chances are that same move-up home would also move up in price to at least 10 percent to $500,000. That’s a $200,000 price difference between the two homes. So by not waiting and selling today, you would actually save $20,000. And most likely, by jumping into the market today your savings would be even greater because consumers have much more bargaining power when shopping for higher-end homes in a buyer’s market.The other thing you want to factor in are the interest rates!  We are still seeing nearly unprecidented interest rates.  Current mortage interest rates are extremely favorable for buyers. In fact, rates for 30-year, fixed-rate mortgages are hovering near 30-year lows. No one can accurately predict whether rates will go up or down. Even those  gurus who follow the market for a living can’t figure out when interest rates will bottom out OR START JUMPING.  Waiting to time the market is a dangerous – and losing – game.  Home prices don’t necessarily move in unison with interest rates. So, if you decided to roll the dice and wait to purchase a home, and the price were to actually drop $10,000 from where it is today, you could still end up losing money.

What? How?  Well if interest rates were to move up by a half-a-point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making and the total amount you’d spend over the life of the loan. So, this may be the BEST time to buy. We know that interest rates are low today. We know that home prices are down. We know that there are plenty of homes on the market to choose from. We know that sellers are willing to bargain. And we know that builders are willing to offer attractive incentives to get your business.

Let the Veenstra Team give you the SPECIFICS YOUR YOUR HOME AND SITUATION!   It is FREE, so you have absolutely nothing to loose!