Here’s Why You Should Move Up Now if You Can!
Right now is a great time to move from a smaller home to a larger home. Let’s assume you purchased a home for $200,000 in 2007 and have seen it drop in value by 20% to $16o,ooo. That would mean you would lose $40,000 on the sale of your old home.
Now let’s take a look at your move up home. It was worth $300,000 in 2007 and saw the same 20% drop in home value to $240,000. That property has lost $60,000 in value. Your Net gain in this is $20,000.
Chart Illustrating Move Up Opportunity
Interest Rates Impact on Moving Up
Interest rates in 2007, ranged in the 6% range. We will use 6.5% although your mortgage rate could have been higher or lower. As you can see in the chart below, by purchasing a $240,000 home today you would also save $183 in your mortgage rate.
Future Wealth Building
Ok, so let’s face facts the last couple of years have not been pleasant for homeowners. I look at the market everyday, so I know how much my home has dropped in value in just the last few years. That has changed and now we are beginning to see increases in home prices. A slow, steady increase which is great for the economy and for you. Let’s take a look at the impact of a 10% increase in home values over the next several years.
That’s a total gain of $28,000 just by moving up. Add in the savings on interest rates and you can see why this is a great opportunity to buy your dream home. Mortgage interest rates are expected to rise this year.
Where Will You Be in Ten Years?
We have just gone through a really difficult financial time in our country. Now is a great time to sell your old home and buy a new home. In ten years, you’ll be very happy with your decision to move up!
Sean Casey is Realtor in Northern Delaware including Newark, Hockessin, Greenville and Bear. He can be reached at 302-733-7020.
Do You Have Questions About Your Delaware Neighborhood? Need More Specific Information On Your Delaware Home For Purchase Or To Sell?
Call Sean Casey For More Comprehensive Information At 302-733-7020.
If you or anyone you know is considering selling their existing home in Northern Delaware, or is purchasing their first home, dream home, step-up home, or retirement residence, I would appreciate the opportunity to serve them, and I can also recommend a relocation professional in the destination of your choice outside the Delaware area!