We are starting to see some real "buys" in the market, and it may be time for you to consider snatching one, but maybe you have to sell a home to buy another. If that is your situation, this is the best time to be a "move up" buyer.
Let's pretend for a moment that you could have sold your home and purchased a new home when the market was stronger, and for easy numbers let's assume the home you were selling was $400,000 and the new home was $600,000. Let's also assume that the market has corrected by 10% on prices, and the concern is the negative of taking less for your home. In reality, you are better off today in selling and buying a more expensive home than you would have when the market was better! How can that be? It is simple, if the market value of the property is 10% less for both properties, you will save $20,000 purchasing today.
Let's look at the math:
When the market was stronger:
Price of home: $400,000
Price of new home: $600,000
Difference: $200,000
After the market corrected: (10% Price Adjustment)
Price of home: $360,000 ($400,000 - 10%)
Price of new home: $540,000 ($600,000 - 10%)
Difference: $180,000
Savings: $20,000 !!!
Now, in addition, the market inventory is much greater, offering you choices that were not available in a stronger market. The combination of a better value equation coupled with more inventory, and historic low interest rates makes this the best time to purchase a home.
If you would like further information on this idea or a market evaluation of your home in Durango/Bayfield Colorado, please contact me, Don Ricedorff at The Wells Group real estate brokerage, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at www.durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, and he resides in Durango Colorado. He has numerous real estate designation including, CRS, CRB, CCIM,ABR, GRI, RSPS, and CIPS, and he is active in his church and in the community.
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