Brian Gauldin

If you are sitting wishing you could move UP in house because your family is growing or you need more space, but you are afraid that you can't sell your home in this market, or you don't want to sell it for less than it was worth two years ago because you need the equity to buy another home, I have news for you. You can sell your home, quickly. You can take the equity that you have essentially lost when you sell your some, and potentially DOUBLE that in equity SAVINGS on your new home. When the market returns, which it will, and home prices rise and begin growing at their normal rate again, you may have taken the loss from the sale of your old house, and turned it into equity in your new home, at double the dollar figure! If inflation increases, as many predict, this will affect home values as well, and you may benefit from even more equity growth.

Just do the math. The average person, when they move up in homes, will purchase a home that is twice the value of the home they are selling. Let's use round numbers for ease of demostration. You have a home that is worth $100,000, but because your market is down 20% over the past few years, your home is worth about $80,000. Keep in mind, you can't price your home for sale a penny higher than its current market value, or it won't sell. It also has to be clean, uncluttered, and presentable. You home is incompetition with those in the same price bracket.

So, your home is priced right, spotless, and looks more attractive than the competition. It should sell sooner than the days on market average in your area. You then find a home that fits your needs. It used to be worth $200,000, but in this market, it is also down 20% in value, now selling at $160,000. When the market values of homes comes roaring back, as many have predicted, your new home should be worth $200,000 again soon.

Lets' do the math. You sold your home quickly in a tough market for a loss of $20,000. But you purchased a new home for $40,000 less than its previous market value, and after the market rebounds, you have $40,000 in equity in your home in just a few short years. You took your loss, doubled it, and now it's tucked away in your new, nicer, larger house. If inflation begins affecting the economy, your home's value will grow even more quickly. As you can see, even in difficult and trying times in the real estate market, Buying and owning a home is still one of the best investments you can make. Questions about this process? Feel free to contact me.