Mirror, Mirror On The Wall
Mirror, Mirror on the wall is it the right time for me to sell my property and if I do will I be the fairest of them all.
When it comes to making a decision on whether it is the right time for you and your family to sell your home many questions have to be answered before the choice is made. Many people are frozen in time thinking about what they had acquired in paper equity over the last ten years and lost in the last two.
Step 1 – Forget about what you had on paper three years ago and start thinking about how you can use your remaining equity to move yourself and family into a better position today.
Here’s a real example I want you to consider:
Purchased property for $700,000 three years ago and today’s value is $400,000. The remaining equity after costs of sale, loan payoff, moving, etc is $100,000. On paper they show a loss of $300,000 should they sell? By the way now their family has grown by one and they need space for a home office due to a job change. I think they should really consider it and here’s why. The home they can purchase today with a $100,000 down and fits their family’s needs is selling for $400,000 to $425,000. The interest rate for their new loan will be significantly less than the rate on the current loan. Last but not least their family will now have the space they need for years to come and isn’t that why we should be buying a home in the first place, not for speculation.
Step 2 – Quit thinking about what was and start thinking about what could be. Get creative, look for alternatives like owner carry back, lease options, non-traditional loans and private money sources.
