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 Shreveport, LA

Latitude: 32.468003 -- Longitude: -93.771115

Other Area Cities: Shreveport Bossier City

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Shreveport, Louisiana, is the third largest city and the third largest metropolitan area in the U.S. state of Louisiana. It is the seat of Caddo Parish. As of 2004, the city's population given by the U.S. Census Bureau was 198,675, a decline from the 2000 census levels. Bossier City lies across the Red River in Bossier Parish and the Shreveport-Bossier City Metropolitan Area population exceeds 375,000. Shreveport is the commercial and cultural center of the Ark-La-Tex, the area where Arkansas, Louisiana, and Texas meet. Some call it the "Gateway to East Texas;" others claim that Shreveport sits on the border between the South and the West. The city exercises a great pull over this region. A good example of this is that people in East Texas watch and donate money to the Louisiana Public Broadcasting Service (PBS) because no PBS station exists in northeast Texas. -- Source: Wikipedia.com

Louisiana 2000 Census Population Profile Map

	Shreveport	Louisiana	United States
Population	200,145	4,468,976	281,421,906
Median age	34.3	34	35.3
Median age for Male	31.9	32.6	34
Median age for Female	36.4	35.3	36.5
Households	78,662	1,656,053	105,480,101
Household population	194,754	4,333,011	273,643,273
Average household size	2.48	2.62	2.59
Families	50,442	1,156,438	71,787,347
Average family size	3.12	3.16	3.14
Housing units	86,802	1,847,181	115,904,641
Occupied units	78,662	1,656,053	105,480,101
Vacant units	8,140	191,128	10,424,540

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