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 Sevierville, TN

Latitude: 35.87756 -- Longitude: -83.569927

Other Area Cities: Gatlinburg Sevierville Pigeon Forge

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Sevierville (pronounced /s?'v?rv?l/) is a city in and the county seat of Sevier County, Tennessee. It is the principal city of the Sevierville, Tennessee Micropolitan Statistical Area which includes all of Sevier County and is a component of the Knoxville-Sevierville-La Follette Combined Statistical Area. Its population was 11,757 at the 2000 United States Census; in 2004 the estimated population was 14,101. The town is situated along the confluence of the East and West Prongs of the Little Pigeon River. It is the eighth oldest city in the state. Sevierville is also the birthplace of singer Dolly Parton, of whom a statue can be found in downtown, on the lawn of the historic courthouse. -- Source: Wikipedia.com

Tennessee 2000 Census Population Profile Map

	Sevierville	Tennessee	United States
Population	11,757	5,689,283	281,421,906
Median age	37.2	35.9	35.3
Median age for Male	34.8	34.5	34
Median age for Female	40	37.2	36.5
Households	5,002	2,232,905	105,480,101
Household population	11,374	5,541,337	273,643,273
Average household size	2.27	2.48	2.59
Families	3,206	1,547,835	71,787,347
Average family size	2.82	2.99	3.14
Housing units	5,787	2,439,443	115,904,641
Occupied units	5,002	2,232,905	105,480,101
Vacant units	785	206,538	10,424,540

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