Selling/Buying Westfield NJ Area Real Estate at the Same Time??? Read This First!!!

I have spoken to several potential sellers in the past few weeks and all of them share one thing in common. They are not happy with the price they can get for their house compared to what they could get just 5 or 6 short months ago.

Here in the Cranford, Westfield, Union County NJ area, we saw a 10-15% price drop in a VERY Short period of time from the 4th quarter last year through 1st quarter this year. For sellers who were counting on $500k for their listing before the holidays, when they find out they can get 450k now, it really throws a kink in their plans. There is GOOD NEWS!!!

What I have tried to explain to all of them is that if they are also buying in the same area, the seller they are buying from is taking the same hit, or even more of a dollar amount hit if its a higher priced home.

My advice is to take the 'punch in the stomach' on the sale, and lock up your buyer, so you can make your offer on your purchase with confidence, and lock in your savings on the purchase, at a GREAT interest rate.

I understand however, that this 'punch in the stomach' will affect the cash you can put down, and will also affect in some cases whether or not you will have enough equity to even sell. This advice is meant for those of you who have the equity position to make your move work, despite the difference in sales price. You will make the equity back in the purchase over time.. Here's how...

Helpful Tip: ask your Realtor to show you what homes were selling for 6-8 months ago in the area you want to buy. I am confident you will find that the home you are buying is also at a discount. If its not priced well, make a fair offer. If it is priced well..buy it, and CONGRATULATIONS, you made a smart decision.

The Math:

If you sell your house for 450k and it used to be worth 500k, that is a 10% loss and $50,000

If you buy a house for $550k and it was probably worth $610k, that is roughly the same 10% decline, but a savings of $60,000. Congratulations, you just likely added $10000 of long term equity.