Is This the Right Time to Trade Up?
Use this trade-up calculator
to see if trading up makes sense for you.
The answer is yes and the reason is the math. A good way to see how the trade-up math works in your favor is to set up a couple of “what ifs.”
What if you had traded up at the height of the market?
The house you were living in back then was valued at $500,000, and the one you had your eye on was valued at $800,000. Had you pulled the trigger on the deal, your additional cost would have been $300,000.
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Trading up at the height of the market
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| The cost of the house you wanted |
$800,000
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| The value of the house you lived in |
$500,000
|
| The cost to trade up at the height of the market |
$300,000
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What if you held off until now to trade up?
Based upon current market conditions, it would be perfectly reasonable to assume that both houses…the house you are living in now and the one you want…have lost about 20% of their respective values. That means your dream house is now valued at $640,000 and your house is valued at $400,000. So, if you trade up now, here is how the deal looks:
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Trading up now assuming 20% depreciation
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| The depreciated price of the trade-up house you wanted before |
$640,000
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| The depreciated value of the house you live in now |
$400,000
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| The cost to trade up now |
$240,000
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| The amount saved by delaying your trade-up |
$60,000
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So, if you have been thinking about adding space and amenities, now is the time to do it!
What if...there is more to the story?
There is more to the story...and it gets even better...but we need to meet so I can take you through the details. Call me at 973-865-1863 or email me at bmccabe362@wessex-homes.com so we can set up a convenient time to meet. I'll bring the bagels.
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