On average I make between 400 to 500 phone calls each week in my attempts to prospect and to talk to people about buying or selling a home. One of the questions I try to ask… that is before the caller disconnects from the conversation, is, would you consider to upgrade to a larger and better home. The answer is almost always something like, “are you crazy, why would I consider to sell my house and to buy another house in this crappy market? Well… I understand the sensitivity for those people who have either lost absolute dollars, meaning, perhaps those people who bought at the peak of the market in 2004 / 2005, or even those people who have lost what they consider as unrealized gains.
But, all bitterness aside, think about it. If you were contemplating an upgrade a few years ago, now may be the time for you to benefit. First, loan rates are at a remarkable low. Second, let’s just say that your home was valued at $850,000 in 2005, and is now worth, oh, let’s say about $625,000. At the same time, let’s suppose that you were interested to upgrade into a home valued at $1,250,000 also in 2005. Well, the value of the upgraded home might be valued closer to $900,000 now. This example is typical of the San Diego Real Estate market. So, while your current home lost $225,000, your next dream home lost $350,000, or a benefit of $125,000, meaning more house for less money. Third, and since everyone hates the thought of paying their hard-earned money to taxes, think about the lesser property taxes to pay on that upgraded home that now costs less to purchase than several years ago. And fourth, with all things being relatively equal, and without regard to any re-financing on your current home or other special circumstances, then your monthly principal and interest payment may not be much more on the new home, than you are paying on your existing home. Check with your lender or financial advisor first. And finally, fifth, when the market does rebound, which everyone hopes and expects it will, you will then be in position, ahead of the curve, to gain substantial increase in equity.
Why complain about the market when it is not within your control. Rather, consider how you can make a move and use the market changes to your advantage. Now … if you do not make a move in this market, my question becomes … when will you know the right time? What signs will you look for to help you make a decision at the optimum time? Or … will the market catch you by surprise and rise above the point when you cannot afford to make a move? So … while you bark at every REALTOR® who calls upon you now, listen to what we say … we are looking out for your interest as well as our own.
We are here to help you, but first you have to be open to ideas, willing to consider possibilities, and motivated to pursue your dreams.
Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.
Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037
Sattelite Office:(858) 437-8400 ext. 248
Home Office: (858) 750-2578
Home Office: (858) 750-2578
Mobile: (858) 449-8250
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