Have you thought about moving to a larger home? Something with a little more price tag attached and you’re wondering if it’s worth it or safe to do?
It’s a great questions! And one many are asking, especially with it being such a strong seller’s market right now. Sure! You could get a great deal on selling your house but won’t the sellers of the house you want have the same advantage? Why would you move up NOW?!
Don’t leave yet… but… we are going to do some math
Still reading? It won’t be that painful I promise! Listen, the market moves by percentages so let’s image that you sell your $175,000 house and move to a $300,000 with the space and neighborhood amenities that you’ve been looking for. How fun! Now, 3 years later let’s say that the market is up 10% for round number sake:
Your old $175,000 house + 10% raise in market value is now worth $192,500.
Now that’s a considerable gain of $17,500! Not too bad, plus you’ve been paying down your mortgage (hopefully on a 15 year mortgage) so you’ll have some nice equity for yourself. Congratulations!
Now consider if you were in your $300,000 house that you really wanted in the first place. Not only would you have the lifestyle and additional creature comforts that you had wanted but… (math time)
Your new $300,000 home that you bought is now worth $330,000!!
So not only have you gained $30,000 just for owning the thing. That’s a whopping $12,500 which is a nice difference to start with…
If we assume you had a 20% down, 15 year, 3% mortgage on both of these homes the mortgage pay down is HUGELY different:
The $175,000 house would pay off $23,880 of principle while the $300,000 house would pay off $40,937 at the 36-month mark!
Whoa! So the combined difference of both mortgage payoff and price gain puts the “move up” at nearly $30,000 more for the “move up” than they would have if they had stayed. That is a GREAT move. Anytime you can get more of what you want, and make $30,000 for doing it – you should. Now is the best market we’ve seen in Wichita in nearly a decade! If you’ve been on the fence, it’s time to get moving.