Wednesday, February 25, 2009

Falling market, moving up to larger home, should I sell?

I received another good question about whether to buy a larger home since the price of the home they are selling is falling. The full question and answer are below.

From: mc
Subject: Re: Selling my townhouse and moving up to a larger home

thank you for getting back to me, I was looking to put my townhouse up for sale some time this summer.

I was looking to get 300,000 for my home so that I could have some money to put down on another home since I would like to move to a bigger home.


Mark's answer:
Hello MC,
It's possible that your townhome may sell for $300,000 it depends upon how the market is at the time that you list it for sale. As well as condition, extras and upgrades of course. But the market conditions are most important.
As you probably have read and heard, our real estate market is softer than it has been for the past 12 years or so. This means that it may take a little longer to sell your townhouse.
Plus, people are predicting prices may drop more this year, most likely this is the case. Although this will affect your selling price, the larger homes will drop more than townhomes, so in the final analysis, the difference between the sale price of your townhouse and the purchase price of the larger home will be less and you will benefit!
At any rate, keep me posted regarding your plans and please let me know if you have any other questions at this point in the process.
Thank you,

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