In Sun City, 16 resale homes sold in July, 17 are
currently under contract, and the inventory is low. Another booming month!
However, it is sometimes more than “numbers.” Whether buying or selling a home, it is a complex decision filled with emotion and major economic implications. As professional real estate consultants, we understand all of this. We know the market! We monitor interest rates! We look at trends! And we listen! Ultimately, we try our best to help our buyers or sellers make the best decision possible. We also know that what is “best” for one client may not be the “best” decision for another. It’s not always simple numbers!!
Quiz: Buying/Selling a House—Who found the
better deal? (answer at end of article)
House A and House B are identical! John paid
$300,000 for House A. Jane paid 310,000 for
House B. They both financed 70%. Who found the better deal?
Jane found a loan for 3.5% and paid $1,010/ mo. principal and interest. John found a loan for 4.0 % and paid $1,074/ mo. principal and interest. They both remained in the house for 9 years? Now, who do you think found the better deal?
John invested the $10,000 he saved on the purchase
into a CD that paid 1% interest. (John is looking pretty good so far.)
John felt the home he purchased was a little too small, but he was pleased with the price.
Jane felt the home she purchased was “perfect.”
Now, who do you think found the better deal,
John or Jane?
9 Years Later -Who made the better deal?
Jane lists her home for $337,000 and sells for
$330,000 in 3 months at fair market value and
moves to another “perfect” home she loves that she also purchased at fair market value. Her new home increased in value approx. $5,000 over the next year.
When John goes to sell, he calculates what he put into his house (custom paint, etc.). Then he calculates expenses required to move in, his time and effort, what it will cost him to sell, and moving expenses when he vacates. He lists his house for $359,000, because that is what he will need to “break even.” It doesn’t sell. Finally, 14 months later after several price reductions, it sells for $333,000 (slightly under the current market
value due to the history on the market, but $3,000
more than Jane received from the sale of her
house approximately a year earlier).
John purchased his new home, even smaller than
his first home, but another bargain at 10% below
Who made the better decision with their last
transaction? John or Jane?
Answer: There is no “Best” answer that fits
everyone. Jane’s decisions were best for her, and
John felt that he made money with both
Yes, buying or selling a home is more than
numbers. As Real Estate Consultants, we help our
clients evaluate their options. We listen, and then
we advise our clients based on data, market
trends, and individual needs. We know that
everyone’s story is different. If you think we can
help you or someone you know make the “best”
decision, give us a call @ 803-802-9800.
Keeping you Informed!
Your Resident Realtors,
Brian & Sharon