What Do You Mean I Did Well? I Brought Thousands Of Dollars To Closing!


What Do You Mean I Did Well? I Brought Thousands Of Dollars To Closing!
By Scott Rogers • August 22, 2010
In these crazy times, it's possible to "beat the market" and yet still be hurting financially... The blue line above shows the trend in single family home prices over the past five years in Harrisonburg and Rockingham County. As you can see, prices have declined, though only a total of 12% over the past five years. The red line shows the purchase and sale of a single home in Harrisonburg, as experienced by some of my clients. You'll note that while the red line declines, it's not by anywhere near as much as the blue line. Thus, my client's home outperformed the market --- they beat the market, and experienced a smaller decline that perhaps they should have. How exciting, right?? But no, actually, it wasn't too exciting. The heroic act of selling the house at a higher price than the market suggested would be possible was still painful. My clients had financed most of their home purchase in 2007, so they actually had to bring thousands of dollars to closing in 2010 in order for the sale to proceed. You see, it's not as simple as the purchase price minus the sales price --- you also have to factor in the closing costs on the buying side (2007) and the closing costs on the selling side (2010). So....when the market is declining, even if it is declining slowly, it can be difficult to purchase and then sell within a short time period. Thus, buyers and sellers should note that: If you're thinking about buying now, and only staying for a few years, and financing most of your purchase price -- you might find yourself in the situation described above. If you bought a few years ago, and financed most of your purchase price, your house's value might have performed well, and yet you'll still have trouble selling without bringing money to the closing table. Hopefully, we'll soon return to predictable, rosier times, when home values are steadily increasing by 3% to 6% per year. Soon, I hope, on behalf of all of my clients! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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