BY GORDON HUNT | AUGUST 2009
New marriage? New baby? Need more rooms and more storage? Tired of condo living? How about the enjoyment of your own yard or more privacy to entertain your friends & family? How about room for your children and pets to play? Do you want off of that busy street? Would you like to live in a better neighborhood? Do you need a larger home or garage? Want a family room with a home theater? How about optimizing and securing your family's financial future by owning a home positioned for maximum appreciation (free money) when the market rebounds? Imagine the pride and recognition of owning the home of your dreams with spacious comfort that reflects your hard work and success.
TODAY'S_MARKET_CONDITIONS_ARE_IDEAL_TO_TRADE-UP to the home you've always dreamed of.
A 15% drop in the market can be represented as follows...
$200,000 home drops 15% = -$30,000
$400,000 home drops 15% = -$60,000
Seller loss at sell [-$30,000] Buyer gain at purchase = [+$60,000] = $30,000 NET GAIN
Falling home prices are a great opportunity for a savvy homeowner looking to move up. Even though your home sales price may be lower, the small loss at sale can be compensated by a greater savings at purchase, RESULTING IN A SIGNIFICANT NET GAIN.
Another important fact to realize is, is that in our current local market, the more expensive homes have actually dropped a larger percentage than the less expensive homes because of affordability factors that make them more difficult to sell, which further increases your net gain in trading up.
By taking advantage of today's interest rates which are near a 50 year low point, that allows you to purchase 20% more home for your dollar, as opposed to rates going up just 2%. If you combine that with the price drops that more expensive homes have incurred, you can own a really nice home at great value and an affordable payment. (Larger home, nicer home, nicer neighborhood, better schools, closer to work, closer to play, more time with family, etc.)
POSITION FOR APPRECIATION WHEN MARKET REBOUNDS
The big key is to position yourself for maximum appreciation when the market rebounds like it always does, to quickly earn a ton of free equity. The market value of these undervalued homes will quickly increase to their previous levels. Trading up to these types of homes now is the exact same strategy employed by successful real estate investors.
Also, note that traditionally... single family homes appreciate at twice the amount as a condominium. Homes off of busy streets, homes with functional floor plans, and homes in high demand locations typically appreciate at a much greater level than their counterparts.
In other words, now is a great time to take advantage of higher priced homes dropping significantly, take advantage of your great buying power offered by today's low interest rates, and position yourself for maximum appreciation (free money) when the market rebounds.
It really is a great time to sell if you stay in the market and trade up or make a lateral move to receive higher appreciation in the future.
Call me now for a free valuation of your home.
CHAPMAN-RICHARDS & ASSOCIATES
THE FINEST COMPLIMENT I CAN RECEIVE IS YOUR PERSONAL REFERRAL!