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 York, PA

Latitude: 39.962692 -- Longitude: -76.728043

Other Area Cities: New Cumberland York Red Lion

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York, known as the White Rose City (after the Wars of the Roses), is a city located in South Central Pennsylvania. The population was 40,862 at the 2000 census. York is the county seat of York County, and is located at 39°58'00?N, 76°45'00?W. York was founded in 1741 by settlers from the Philadelphia region, and named for the English city of the same name. It was incorporated as a borough on September 24, 1787, and as a city on January 11, 1887. During the American Revolutionary War (1775–1783), York served as the temporary capital of the Continental Congress. The Articles of Confederation were drafted and ratified in York. The Conway Cabal, a political intrigue against General George Washington, had its origins in the Golden Plough tavern in York. -- Source: Wikipedia.com

Pennsylvania 2000 Census Population Profile Map

	York	Pennsylvania	United States
Population	40,862	12,281,054	281,421,906
Median age	31.3	38	35.3
Median age for Male	30.2	36.5	34
Median age for Female	32.5	39.4	36.5
Households	16,137	4,777,003	105,480,101
Household population	39,975	11,847,753	273,643,273
Average household size	2.48	2.48	2.59
Families	9,249	3,208,388	71,787,347
Average family size	3.17	3.04	3.14
Housing units	18,534	5,249,750	115,904,641
Occupied units	16,137	4,777,003	105,480,101
Vacant units	2,397	472,747	10,424,540

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