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 Danville, VA

Latitude: 36.587238 -- Longitude: -79.404404

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Danville is an independent city in Virginia, bounded by Pittsylvania County, Virginia and Caswell County, North Carolina. The Bureau of Economic Analysis combines the city of Danville with Pittsylvania county for statistical purposes under the Danville, Virginia Metropolitan Statistical Area. Danville is also called the city of churches because it has more churches per square mile than any other city in the state of Virginia. The population was 48,411 at the 2000 census. It hosts the Danville Braves baseball club of the Appalachian League. Dan River Industries, formerly one of the world's largest textile mills, recently closed leaving a large number of Danvillians without jobs. -- Source: Wikipedia.com

Virginia 2000 Census Population Profile Map

	Danville	Virginia	United States
Population	48,411	7,078,515	281,421,906
Median age	40.5	35.7	35.3
Median age for Male	37.5	34.5	34
Median age for Female	42.8	36.8	36.5
Households	20,607	2,699,173	105,480,101
Household population	46,732	6,847,117	273,643,273
Average household size	2.27	2.54	2.59
Families	12,931	1,847,796	71,787,347
Average family size	2.89	3.04	3.14
Housing units	23,108	2,904,192	115,904,641
Occupied units	20,607	2,699,173	105,480,101
Vacant units	2,501	205,019	10,424,540

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