Connecticut Real Estate News

Wednesday, December 30, 2009

Three Good Reasons to Trade Up Now!

Today's real estate market conditions provide a rare opportunity for selling your home and trading up. Prices are bottoming and interest rates are low. Banks are lending money to buyers that are qualified. Here are 3 good reasons why you should consider trading up now:

  1. The Home Buyer Tax Credit - Available for a limited time only, the Home Buyer Act provides an $8,000 dollar credit to first time home buyers and a $6,500 credit to "move up" buyers who purchase before April 30th 2010. The act makes your home more affordable to home buyers as long as they close before the deadline. Selling and then buying your next home now allows you to benefit on both sides of the transaction. For more info on the Tax Credit, click and check out my blog, Connecticut Real Estate News.
  2. Mortgage interest rates are historically low - For the next few months mortgage interest rates will remain low, but most economists believe that rates will be going up as the economy gets better and the Federal Reserve stops supporting some of the secondary mortgage markets. This opportunity to mortgage at cheaper rates will not last forever. The difference in the cash spent to pay off your loan will add up quickly. For example on a $500,000 loan, a mortgage interest increase of only one percent costs more than $110,000 in extra interest payments over the life of the loan. Use our mortgage calculator to see for yourself!
  3. A profit when you sell - When prices appreciate and you trade up in price, the same percentage price appreciation gives you a greater dollar appreciation than you can earn on your current home. Think forward to five years from now and real estate has appreciated 20%...Keeping your old home that you could have sold for $375,000 gains you $75,000. Trading up by purchasing a new home for $750,000 gains you $150,000. Trading up while the market is down makes you an extra $75,000 from the transaction. Waiting for the market to appreciate before you upgrade will cost you an extra $75,000!

The bottom line is that if you can afford to trade up today you have a lot of options to choose from when selling your home and buying a new one. Whether you want to buy a bigger, better home or not - whatever your goals are - now is the time to get your home on the market!

Click here for a complete list of Connecticut homes for sale.

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posted by David Epprecht at 8:17 AM

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