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 Verona, NJ

Latitude: 40.832449 -- Longitude: -74.242276

Other Area Cities: Verona Bloomfield Clifton Clinton East Rutherford Fairfield Garfield Glen Ridge Hanover Lincoln Park Livingston Lyndhurst Montclair North Arlington Passaic Rutherford West Orange West Paterson West Caldwell Wood-Ridge Wallington

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Verona and several neighboring towns were all originally one town known as "Horseneck". In the early 1700s, a group of settlers left Newark and purchased a large tract of land northwest of their home city for the equivalent of a few hundred dollars from the Lenni Lenape Native Americans. This piece of land extended west and north to the Passaic River, south to the town center of what would become Livingston, and east to the First Watchung Mountain, and was called Horseneck by the natives because it resembled the neck and head of a horse. What was then known as Horseneck contained most of the present day northern Essex County towns: Verona, along with Caldwell, West Caldwell, Cedar Grove, Essex Fells, Fairfield, North Caldwell, and Roseland are all located entirely in Horseneck, and parts of what are today Livingston, Montclair, and West Orange also were contained in the Horseneck tract. -- Source: Wikipedia.com

New Jersey 2000 Census Population Profile Map

	Verona	New Jersey	United States
Population	13,533	8,414,350	281,421,906
Median age	41.4	36.7	35.3
Median age for Male	39.6	35.5	34
Median age for Female	43.3	38	36.5
Households	5,585	3,064,645	105,480,101
Household population	13,520	8,219,529	273,643,273
Average household size	2.42	2.68	2.59
Families	3,695	2,154,539	71,787,347
Average family size	3.06	3.21	3.14
Housing units	5,719	3,310,275	115,904,641
Occupied units	5,585	3,064,645	105,480,101
Vacant units	134	245,630	10,424,540

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