A Rising Tide . . . Your House Will Be Worth More Later, But So Will Their House!


A Rising Tide . . . Your House Will Be Worth More Later, But So Will Their House!
By Scott Rogers • October 12, 2010
It is said that a rising tide lifts all boats. Apparently, there are some larger political or economic meanings to the concept, but for today we'll just consider it within the context of the local real estate market. Consider a house that is listed at a GREAT VALUE -- perhaps it should be priced at $330k, but it's listed at only $290k. Some buyers come along and are quite EXCITED to buy this house that is priced so well -- but they have to sell their house. The buyers are then DISAPPOINTED to find out that their own home won't sell for what they thought it might. Instead of it being able to sell at $225k, it will only be able to sell for $215k. These buyers / sellers were advised quite well by their wise Realtor (not me -- one of my colleagues here at Coldwell Banker Funkhouser Realtors).... "You see -- if we wait until later to sell your house, you'll be able to sell it at a higher price -- but the owners of the house that you want to buy will also be able to demand a higher price for their home!" The rising tide lifts all boats! Put another way, it's o.k. to sell low in a tough market, as long as you are also buying low in that same tough market. This is especially important to remember given today's low interest rates. Let's compare buying now versus buying later.... If you buy today, for $250k and finance at 4.25%, and you'll pay $1,162 / month. If you buy later, for $280k (after the market has "recovered") and finance at 5.5%, and you'll pay $1,471 / month. (for the same house!) If you're both buying and selling, this can be a very compelling time to make a housing transition! Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? 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
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 23, 2024 (unless otherwise noted).
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