Eugene Loan Guy

If you are a current homeowner in the Eugene/Springfield area, you probably don’t want to sell your home right now to buy a new, bigger home because it will cause them to lose money on that sale, right? So, what can I possibly say that would make you want to do that? Even if you really need a bigger place,  why would you want to take a loss on the one your live in?

Steve Harney, a leading expert in negotiation and leadership training for residential real estate professionals, has put together some very interesting and convincing information about how the question is not, “Should I move up,” but instead, “Why Wait?” This is an interesting change from the conventional wisdom that it is better to wait until prices improve before I sell my home and makes a lot of sense to me.

You can read Steve’s blog posting here. I know that Steve’s numbers are not the same that you might be looking at, but I would like to personalize it some for your own uses. This is dynamic information about what someone will lose by not making their move to the home they need now. I have always found that a person was more motivated by the fear of loss than the hope for gain and this article very well outlines how that loss is a very real possibility if they don’t act now.  Take a look just at this example from Steve:

Let’s assume the house they currently live in was worth $450,000 just two years ago but is now worth $400,000 (I realize that these prices cannot reflect every market. Make the changes to fit your circumstance). Let’s assume that the house they are considering buying was worth $650,000 two years ago. Assuming the same level of depreciation, that house will now be selling at approx $580,000. Though they will be ‘losing’ $50,000 on their current house, they will be saving $70,000 on the purchase of the new residence.

Net Gain = $20,000

The First Time Home Buyer Tax Credit has been a huge benefit for getting new buyers into the market place, but it is time that we looked past the Tax Credit and worked to help our “move up” buyers actually move up. Without looking at the whole picture, not just what is happening on the home you own, but the one you need, you will continually end up with the glass half empty.

If I can help you work these numbers for your specifics, so give me a call. This market will not last forever, it never does. We are already seeing some movement in the lower priced homes on the way up, now is really the time to take advantage of the home prices in the middle and top of the market. Call me today at 541-342-7576/541-221-3455 cell or e-mail me.

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