Why Would You Want To Sell When The Sky Is Falling?

November 20, 2008

Are you crazy? Are you so flush with money that you don’t mind giving away $20,000 or $30,000 of your equity? I almost said “hard-earned” equity – but for most of us who’ve bought in the last 10 years, we didn’t have to do much other than sit back and watch our home appreciate. But however we’ve earned the equity, it doesn’t seem on the surface to be a good idea to sell right now.

But what if I told you that by giving away $20,000 I’ll give you back $30,000? You’ve now netted $10,000. Sounds a bit better now, doesn’t it? You’re continuing to earn equity the “easy” way – even in this different market.

Let’s say that you own a house that a few years ago was valued at $200,000 – up 30% from when you bought in 1999. Unfortunately prices have dropped in your area so now your home is only worth $180,000 – down $20,000 from 3 years ago. Ouch! It’s no good wishing you’d sold then – that window of opportunity has already passed. But if you have a stable job in an industry that appears to be weathering the economic downturn fairly well, then you might want to consider taking advantage of lower prices on larger homes. If you’ve had to drop your price 10%, then larger, more expensive homes will have to drop their price also. A home that would have cost $300,000 two years ago may now be listed for $270,000.

Then add in the monthly savings of an incredibly low interest rate (I just spoke to a Mortgage rep and he told me as of December 30, 30 year mortgage rates are holding at between the high 4% and mid 5% range. Fifteen year rates are slightly lower at 4.75%.) So what does this mean to your bottom line? For many, the cost is only a couple of hundred dollars more a month for a much bigger comfortable home. Only you can do your calculate what the cost of moving into a more spacious home would be. If I were looking to move up, and my long-term employment seemed secure, I’d definitely be looking now!

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Local Information for Chandler, AZ

Latitude: 33.297756 -- Longitude: -111.863522

Other Area Cities: Queen Creek Chandler Gilbert Mesa Tempe Higley Sun Lakes Maricopa

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In 1891, Dr. Alexander John Chandler, the first veterinary surgeon in Arizona Territory, settled on a ranch south of Mesa, studying irrigation engineering. By 1900, he had acquired 18,000 acres of land, and began drawing up plans for a townsite on what was then known as the Chandler Ranch. The townsite office opened on May 17, 1912, the same year that Chandler High School was established. By 1913, a town center had become established, featuring the luxurious Hotel San Marcos, the first golf resort in the state. While Chandler stagnated through the Great Depression, the founding of Williams Air Force Base in 1941 led to a small surge in population, but Chandler still only held 3,800 people by 1950. By 1980, it had grown to 30,000, and it has since paced the Phoenix metropolitan area's high rate of growth, with vast suburban residential areas swallowing former agricultural plots -- Source: Wikipedia.com

Arizona 2000 Census Population Profile Map

	Chandler	Arizona	United States
Population	176,581	5,130,632	281,421,906
Median age	31.2	34.2	35.3
Median age for Male	30.6	32.9	34
Median age for Female	31.8	35.5	36.5
Households	62,377	1,901,327	105,480,101
Household population	175,799	5,020,782	273,643,273
Average household size	2.82	2.64	2.59
Families	45,382	1,287,367	71,787,347
Average family size	3.26	3.18	3.14
Housing units	66,592	2,189,189	115,904,641
Occupied units	62,377	1,901,327	105,480,101
Vacant units	4,215	287,862	10,424,540

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