Friday, May 28, 2010

Wait Longer to Move Up and Lose Money, or Buy Now and Save Big

Ready to trade up to a nicer home? Yes, it’s always better to trade up in a buyer’s market, like the one we are in now. This is because while the value of your house may have gone down, the prices of higher-end homes have also dropped—creating real opportunities for you.

Think waiting will save you money? Say your neighbor sold his house six months ago for $300,000. In today's market, your home's value has decreased 10 percent and you could only get $270,000. So you might think you'd be taking a $30,000 'loss' on your home when you sold it for the new $450,000 move-up home you desire, but you’d be wrong.

Why? Don’t forget that higher priced homes are also dropping in price. And if you wait for your home value to increase, the move-up home you desire will also likely increase in price just as much. So if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are that the same move-up home would also move up in price to at least 10 percent from $450,000 to $500,000. That’s a $200,000 price difference between the two homes.

So by NOT waiting, you could actually save as much as $20,000. And most likely, by buying today your savings would be even greater because consumers have much more bargaining power when shopping for higher-end homes in a buyer’s market. Shaw Homes has been recognized as Builder of the Year by The Home Builders Association of Greater Tulsa. We are proud of our exceptional, high-quality new homes in Tulsa, Broken Arrow, Jenks, Owasso, Claremore, and Bixby. Please visit ShawHomes.com for more buyer resources and home buying advice.

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