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 Plainville, CT

Other Area Cities: Hartford Newington Canton Center Farmington Prospect Simsbury West Hartford Plainville Avon Wethersfield East Hartford Meriden

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Plainville is a town in Hartford County, Connecticut, United States. The population was 17,407 at the 2004 census. The town name can be confused with Plainfield, Connecticut. As of the census of 2004, there were 17,407 people, 7,385 households, and 4,645 families residing in the town. The population density was 685.5/km² (1,776.0/mi²). There were 7,707 housing units at an average density of 304.9/km² (789.9/mi²). The racial makeup of the town was 93.52% White, 2.25% African American, 0.17% Native American, 1.67% Asian, 0.01% Pacific Islander, 1.19% from other races, and 1.19% from two or more races. Hispanic or Latino of any race were 3.57% of the population. -- Source: Wikipedia.com

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