"Lynn, this is Rob. I know I've been talking to you about finding a new Salt Lake County Property for us, but my wife and I are worried about the equity in the house we already own."
I listened intently. Rob is a close friend of mine and I want to make sure I give him the best advice I can. He's been talking with me about buying a new home in Davis, Salt Lake, or a Summit County Utah Property for the past three or four months now. But, he's like so many of us these days. He listens to the news media and their constant doom and gloom; he's worried about making the right real estate decision!
I knew I could help him! I could even help him find a Tooele County Property!
"Rob," I said, "The first thing you need to know is that the media is always looking through the rear window of their car! Can you imagine trying to drive forward by looking through your car's rear window?" They only look at what the market HAS done, not what it's doing right now or where it's going next. Buying real estate is always a selling decision. If you will always remember that, things will work out well for you in both types of real estate transactions. And, Rob's case isn't any different!
Rob owns a house in the same market area where he wants to purchase. That means that the market dynamics are the same. I simply explained to him that while it may appear as if he is losing his equity when he sells in a down market it isn't true at all! As long as he is purchasing in the same market at the same time he is simply transferring his equity to his new home! But, that's not the whole story!
Because Rob and his wife are buying a larger, more expensive house, he has the opportunity to gain higher additional equity than if he were to stay in his current home. How you ask?
Higher priced homes, property and real estate in Davis, Tooele, Salt Lake and Summit Counties have been hit harder with price reductions than lower priced homes because there are fewer potential buyers in the higher real estate price range! So, he'll be getting a larger discount on his purchase now which translates to: Ca-Ching ($$$)! When the market recovers the higher end homes and real estate in Utah will gain greater equity advances than the lower end homes because they fell further!
So, if you're looking to sell and buy in the same market, now is a great time to buy and sell! Don't let rear window drivers drive you to a future they can't see because they don't know how to get there and don't understand buying or selling real estate!
"My wife and I are trying to decide what we want to do with our house since it's such a bad time to sell," said Rob. Rob is a friend and client of mine.
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Lynn Butterfield is a highly sought after in Utah Real Estate. He represents Coldwell Banker with the Economic Development Corporation of Utah & MountainWest Capital Network, he mentors early stage companies with other professionals at the Wayne Brown Institute and is a member of the Utah Association of Realtors Legislative Committee. Find out more about Lynn and Utah Real Estate visit http://www.salt-lake-county-utah-real-estate.com/
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