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 Solon, OH

Latitude: 41.389871 -- Longitude: -81.44233

Other Area Cities: Parma Garfield Heights Brecksville Solon Aurora Beachwood Bedford Bedford Heights Cleveland Heights Highland Heights Macedonia Bainbridge Chagrin Falls Pepper Pike Shaker Heights South Euclid Twinsburg University Heights Warrensville Heights Streetsboro

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In 1820, the first settlers arrived from Connecticut to live in part of the Connecticut Western Reserve. The township was named after Lorenzo Solon Bull, who was the son of Isaac Bull, one of the first settlers. Purportedly, the selection of young Lorenzo's middle name was due to its derivation from the father of democracy, Solon, the famous Athenian lawmaker of Ancient Greece. The early settlers faced challenges common to pioneers, but in Solon, drainage and wetlands issues complicated settlement and agriculture. Overcoming these obstacles, Solon Township became an arable farming area, producing corn and wheat crops and supporting dairy farms (including 5 cheese factories). By 1850, the population of Solon Township reached 1,034. Due to nearby Cleveland's position as a national hub of the railroad industry, rail also contributed greatly to Solon's growth. In 1857, the Cleveland-Youngstown section of the Cleveland and Mahoning Railroad established a line running through Solon. -- Source: Wikipedia.com

Ohio 2000 Census Population Profile Map

	Solon	Ohio	United States
Population	21,802	11,353,140	281,421,906
Median age	39.4	36.2	35.3
Median age for Male	38.9	34.9	34
Median age for Female	39.8	37.5	36.5
Households	7,554	4,445,773	105,480,101
Household population	21,802	11,054,019	273,643,273
Average household size	2.89	2.49	2.59
Families	6,168	2,993,023	71,787,347
Average family size	3.26	3.04	3.14
Housing units	7,801	4,783,051	115,904,641
Occupied units	7,554	4,445,773	105,480,101
Vacant units	247	337,278	10,424,540

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