I’d like to sell my home and purchase a better home, but high home prices are shutting me out of the move-up home buying market. Although there are plenty of foreclosures on the market here in Florida, my husband and I aren’t the fix-it-up types. We can’t afford new homes either because the prices have risen so quickly that I’m reminded of the housing bubble. According to a recent article by Wall St. Cheat Sheet, the rebound in home prices doesn’t translate into a robust housing market. The author points out that more than 40 percent of home sellers plan to list their homes above market value. Even though it seems like a good time to sell, it’s a tricky time to buy a home.
Buying the second home first
I know one friend who decided to purchase a home before selling because she is so confident that it’s a good time to sell. She was more worried about whether she could get a good deal on a home purchase. In her case, the next home was a foreclosure. I wouldn’t want to take out a new mortgage on my next home without the down payment I’d get from selling my current home. Also, I don’t trust this housing market. Last year, the housing recovery in my neighborhood only lasted for about 3 months before it went dead again.
Having seller’s remorse
During the last housing bubble, I didn’t experience any buyer’s remorse. But I would have felt seller’s remorse if I had duped someone into buying a home for me for much more than it was really worth. I rather make a fair real estate exchange. Taking advantage of others by selling them a home above market value feels wrong to me. While there is nothing wrong with staging a home or improving curb appeal to bring out it’s potential, some home sellers go too far by misrepresenting a property.
Waiting for the next crash
I have decided to hold off on buying my step-up home until the real estate market gets back to normal. I also think it’s wise to wait and save up money for a new home. With a new home, I can get the most modern energy-efficient windows and technologically advanced plumbing, design and appliances. During the last housing crash, new home builders lowered prices dramatically because of a lack of demand.
In some cases, home sellers might be getting greedy, but in other cases they are just trying to get back to even on their real estate purchase. I’m sandwiched between two houses that are the same home model. One of my neighbors paid $185,000 and the other paid $165,000 for the same home. During the bottom of the housing bust, another neighbor paid just $95,000 for the same home. If the neighbor who paid $95,000 listed her house for $185,000, people might accuse her of being greedy. When it comes down to it, a home is only worth what someone else will pay. I guess I’m just not willing to pay top dollar for a home that is going to be out-of-date in about 5 years.
More from this contributor:
I Paid a Price for Failing to Budget
Saving Money for a Step-up Home
My Home is a Forced Savings Account