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She Said: Where Will We Go?

She Said: “Where Would We Go?” Do You See What I See?

Selling a home involves a subtle equation. You may need to sell your home, for whatever reason. You may want to sell your home. But what if the reasons for doing so are not so clear? What if you didn’t need to sell? Suppose you have lived in your home for much longer that the national average? Suppose you have raised a family, become involved in your community, and over the years, made the house you purchased into a home?

I know a couple who have had a conversation about selling their home almost every year since they purchased it thirty years ago. He has always suggested that they should sell their home. And she has always asked, “Where would we go?”

Do you see what I see? His suggestion to sell their home is based on a calculation that may or may not be valid. While equity is an imaginary measure of wealth, the reality of how much any house is worth at any given moment is based several key factors. Equity is based on the current market (what is selling locally and how fast), the condition of the house (how much money it has costs to own the house, including upgrades, upkeep, and ongoing costs not spent on the loan), and the cost of the money a buyer would need (interest rates and how they impact loan origination). The longer you own the home and the regularity of the maintenance over those years will give most homeowners a positive net equity.

But equity is not realized until the home is actually sold. And in most cases, the difference between the remaining mortgage and the selling price is channeled back into the newly purchased house in the form of a down payment. A sale might make you equity positive, albeit briefly. The purchase however will likely eliminate that difference.

So her question has merit, even if equity had little to do with her reason for wanting to stay. She has managed to humor him and pose the question he was never able to answer. But people do move and she may soon be in agreement with him. Soon her question will change to when. I can almost guarantee this will occur (for reasons I will discuss in another post).

The answer to “where would we go?” might be to something smaller, something more manageable, something closer to family, or to a house in a better neighborhood.

Almost every home-buying situation has a home-selling situation tied to it. Sometimes they are contingent on the sale to help facilitate the purchase. And I know how hard and often complicated the process can be. If I can help you bridge that process, please let me know. The odds favor the question will be asked. And when you do ask it, I have a couple of ideas that will make the question worth asking.

How can we assist you today?

Nola,

On behalf of The Jones Group @ Sunriver Realty

Nola Horton-Jones, Principal Broker/Realtor | ABR, C-RIS, e-PRO, GREEN, RSPS, CCIM Candidate

Bryce Jones, Principal Broker/Realtor | ABR, CRS, e-PRO, GREEN, GRI, RSPS, SFR

The Jones Group @ Sunriver Realty | 57057 Beaver Drive | Sunriver, OR 97707

N Mobile: 541-420- 3725 | B Mobile: 541-420- 4018 | Fax: 541-593- 5123

Email: TheJonesGroup@SunriverRealty.com

Web: Bend-SunriverHomes.com|SunriverRealty.com|Sunriver-LuxuryHomes.com

Licensed in Oregon