Nicole writes:
We have a great, 6 bedroom house in Gilbert. I’ve found a “perfect” (floorplan and upgrade-wise), new-build in Mesa with more square footage and a marginally bigger lot. We figure we could sell our house for perhaps over the price of the new place. My husband is hesitant because he thinks our current house will not sell in this slowed housing market. I say now is the time to move up. What do you think? -Nicole
Based on the facts presented, I think that I am going to agree with your husband.
Are interest rates (historically speaking) quite low? Yes. If one was going to buy a home in the near future in the Phoenix area, would now be better than later? Again, yes. But part of your question includes the concept of selling your present home for a price equal to or greater than what the new home would cost. Unless you planned on paying MORE per month or more out of pocket it does not look like you can make the move at this time. The data you’ve provided is quite limited but you have also included that you like the new home more than you like your present home. So … it looks like the price range you are thinking your present home will actually sell in is not correct. If the new home is somehow “better” than the one you are in then it will sell for more than the house you are in now. The only way this would not be true is if you are making a significant trade down in the quality of the neighborhood. This does not even take into account that your closing costs, buying and selling with commission will be at least 10%. Which would mean that if your current home was worth the same price as the house you were buying you would still need to come up that amount in cash or wind up with a loan that was at least 10% more than the one you have now.
I’m not trying to stop you from getting what you want, just pointing out that if the new home is equal to or better than your present home then your present home would not sell for as much as the new home.
