The Classic Tale of the Chicken & the Egg: Which came First the Chicken or Egg?

The Classic Real Estate Tale: Should I Sell Now or Wait until I can Get More?

Mathematically, your money goes further when you sell in a down market & then buy in a down Market.

Example:
It’s your 1st or 2nd Home in the Suburbs, a 3 bedroom Ranch or 2 story with 1,200 – 1,500 square feet. The age of home is 30-50 years old, with a  2-stall garage.

You had no Children or small children when you moved in.

You need more room, would like better floor plan, would like to be more energy efficient.

You have been in the home at least 5 years probably closer to 10 years.

You had planned on moving 3-4 years ago but the market hit the Fan.

You can’t take it any longer!! But you don’t want to walk away from all of the equity you HAD because home values have dropped 30%.

What are you going to do???

At the peak of the market you home was worth $150,000, now it is only worth $105,000.

You paid $105,000 10 years ago and just can’t get over the fact that it isn’t worth more than what you initially bought it for.

How can you walk away from $45,000 in Equity?

Just doesn’t seem worth it.

If I just wait until the market comes back I can sell it for $150,000 and get my $45,000 in Equity back.

However, if you Buy a new home that WAS worth $250,000 but has dropped 30% and is NOW Selling for $175,000 you will end up with $75,000 in Equity.

So which is Greater $45,000 or $75,000?

Which Home would be nicer to live in the $105,000 or the $175,000?