It’s a great question “should I wait a year to sell my Rockford house”? – In theory, waiting for the market to bare even more money, sounds logical, but is it? While none of us have a crystal ball and there is no way to know for sure if prices will be up, down, or the same there are some other methods we can use to gauge results.
Let’s say you want to sell your Rockford house today to buy that dream place while the rates are low and prices are still very attractive but you’re concerned about the value and thinking it might be worth more next year, consider the following:
Let’s say your home value today is $200,000 and we use an increase rate of 3.5% (this is a average number per Case Shiller, Board of Realtors & many research companies)
$200,000 x’s 3.5% is $7,000 – so, your 2013 home sale price is $200,000 and in 2014 if increase rates remain “common” you could get $207,000 – sounds good right? Hold on…
If you have an average mortgage payment of $1,500 per month you just spent $1,500 per month to own that house for 12 months which is $18,000. You see how you just “spent” $18,000 to “possibly” gain the extra $7,000 in increased value? You actually lost $11,000.
Another thing to consider… is the home you want to buy now an upgrade? In other words is it going to be more money and you’re buying up? If so that $300,000 home you want will also be increasing 3.5% which next year will make it a $310,500 house which you will now have to pay.
PS. If you would like to talk more about selling your home in Rockford MN or what the value might be today give The Derrick Monroe Group a call at 763-477-5777 anytime.
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