Time to take a look at your database many of your clients are ready to get into a bigger home. If your client is planning to sell their home and buy another in the same market, selling for less may mean they will ultimately gain more. Sounds crazy, but read on to see why.
Your equity gain on purchase may be greater than your loss on sale. All things being equal, selling for 10% less than you might like probably means you would also get a 10% discount on the home you want to buy. So you might miss $20,000 on a $200,000 sale while offering $40,000 less on a $400,000 purchase.
You may get more for less because of low interest rates. The cost of owning a home has dropped due to both lower rates and prices. This combination can mean much more home for the same cost of interest that you may be incurring now. This may be true especially if you haven’t been able to refinance due to a low appraised value.
Tax-free capital gains exclusions are still available. And who knows when tax laws will change? If you’ve built up a lot of equity in your current home, selling while it’s still favorable tax wise may make sense. Always consult with your tax professional for advice on tax matters.
Are you an investor or do you want to be one? Many current sales are to investors because they see opportunity. It’s not for everyone, but if you think you have what it takes, we’re happy to assist.
Want to know more? If you haven’t checked in a while, you may be surprised at how many homes, once out of reach, have become affordable to qualified borrowers today. Never hesitate if you’d like to have a conversation to see what it might mean for your clients.