Even if you, as the seller, are taking a loss from what you paid , you are still making out. Here are three great reasons why:
1. You may be losing as much as 20% of your value on the sale of your home, but the owner of the home you are buying is doing the same thing. Because you are buying, the savings for you is larger than the loss. For example, you sell your house for $ 160,000 which originally cost $ 200,000, this is a $ 40,000 loss ( 20%). The home you are looking to purchase is $300,000, but the owner paid $ 375,000 when they originally bought it. They too lost 20%, but their loss is more since it is based on a much more expensive home than the one you are selling, because they originally paid $ 375,000. They lost $75,000 and you lost $40,000. Your net gain is $ 35,000.
2. The interest rates are again at New historic lows, so you will get the lowest interest rates ever! Not only will you buy a home for much less money than the same house cost a few years ago, but the monthly payment will also be significantly lower, too.
3. The level of selling activity has picked up in the past 8 months. The National Association of Realtors has seen a steady rise in the number of homes sold since the fourth quarter of 2011. This is making it a great time to find a buyer for your home. Why not take advantage of all these factors and buy a new home now...even if it means taking less money to sell your home.
President NMLS #118317
Abacus Regional Mortgage NMLS # 113984
484 695 5972