I am currently consulting with two home owner’s considering the sale of their homes. While they have the assets to purchase a new home they know they may take a loss on the sale of their current home. Their first option is to sell now and take the loss. Second option is to rent their current home until the market goes up and move on to their home of choice. This is a dilemma that many homeowners face in today’s market and there is no clear cut answer to the question…we have no crystal ball.
While the market is showing signs of stabilizing there certainly could be more softening. Yes, the market could turn up but I don’t see the potential of rapid or significant appreciation.
The question is do they want to become “involuntary landlords”. Do they want the responsibility of being a landlord? Do they want to risk the wear and tear issues and expenses that every landlord endures along with the risk of further home value deterioration.
The key point to focus on are the current mortgage rates, they are very low. If they miss this mortgage rate opportunity they pay for that over the life of the mortgage. If they accept the loss of their current home and capture the home of choice at a great price with great rates would this be an acceptable result?
Looking to buy or sell in Howard County Ann Arundel or Baltimore County? Let me earn your business. Contact me at Mitchell Donovan
