It’s all relative…
Sellers often grapple with establishing a listing price that reflects the current market value of their home. Having access to current sales statistics can take the emotion out of that decision, but too often leaves the seller feeling they’re holding the short end of the stick in this buyer’s market.
That can be true if the seller does not purchase a new home after the sale of their current home. That’s why it is all relative! Sellers who purchase another home in this buyers market may realize a substantial savings, that may be greater than the decrease realized on their sale. They may even be able to see a profit, despite the current market conditions. Yes! I said profit.
For example, Bob owned a split level valued at $171,000 in 2007 which he sold in December of 2008 for $150,000, realizing a $21,000 or 12% decrease in value. He then purchased a newer colonial in January 2009 for $230,000 which had been valued at $262,200 in 2007, realizing a $32,000 or 12% savings, so Bob actually came out ahead $11,000 after completing both transactions.
It is a great time to buy, particularly with the low interest rates available, and if you’re selling a home, and price it right, you too can take advantage of this buyers market!
