Move Up Today
Do you want to trade-up to a larger home, but can’t seem to rationalize “taking a loss” on your current home in the Tampa Bay area?
Consider this example: the Jones purchased their Odessa home for $200,000 in 2005. Now they want to buy a larger home in Westchase, but the market has depreciated by 20%. The Jones do not feel that they will be able to sell their $200,000 home without taking a loss and still be able to purchase the $400,000 home they want in Westchase.
CAN THEY AFFORD TO MOVE UP? Yes! If the old home was purchased for $200,000 and declined by 20%, then the value decreased by $40,000 to $160,000. The new/larger home that was worth $400,000 has also declined in value by 20% ($80,000) to a value of $320,000.
Hence the $40,00 loss on the old home would be offset by the $80,000 savings on the new home in Westchase – resulting in a gain $40,000 by moving up. Contact Team Bohannon today to schedule an appointment.
- by dale bohannon
[...] either. What is obvious is that real estate is not at its peak, which means that purchasing real estate now means that even if it drops a little it will, in the end, go up. A lot of people have made a [...]