Is your family growing? Do you wish you had that extra bedroom or playroom to accomodate your needs?
The current "soft" real estate market is ideal for those who want to upgrade their home. While it is true that to sell your current home you will have to price it aggressively and possibly lose some of the potential capital appreciation, you will also pick up a substantial discount on the buyig side, with a higher value property.
So in the long run, you will be better off when the real estate market bounces back (it will- the basic economic principles are solid: more people, same amount of land...) because you will start from a larger base price...
You need to determine:
- What are your current needs?
- What monthly payment can you comfortably afford?
- What would you like to have that you currently don't?
- Can you qualify for a new loan?
Recently I helped a young couple upgrade their home on James Island. They could afford to buy the larger home first (they knew exactly what they wanted and we negotiated an attractive discount with the seller), and then we placed their original home on the market (it was staged beautifully and priced right, so it sold in 3 weeks).
If you are considering buying a larger home or upgrading your home, please give me a call. I would welcome the opportunity to assist you! Timing is perfect - the combination of a soft real estate market and low mortgage interest rates is ideal to make the switch now - I don't believe this is going to last for too long...