Always consult with one or more Realtors before you start making plans for your home equity.
Over the last 3 years home owners have come to have great expectations of the equity in their homes. We now know that things have leveled off a bit over the last 6 months. However, great expectations sometimes lead to ambitious planning. While the market was rising many folks started making plans based on what they thought they would net when their home sold:
1. pay off auto loans and credit cards
2. put $100,000 in savings/investments
3. take a European cruise
4. pay cash for a smaller home in a retirement type community
What does one do when they learn that the market does not agree with their sense of value for their home? It leads to denial [“I won’t sell unless I get my number”, which is fine if plans can wait a year or two] OR disappointment [“I won’t be able to buy the exact house that I wanted”]
GOOD NEWS! If your house slipped in the marketplace, perhaps the one that you wanted to buy slipped also, perhaps even more than yours. Your goal is still attainable. But it is still important to let go of prior fixations based on incomplete or limited knowledge. Go with what you know. Don’t stay stuck and delay your plans waiting for a higher price that is not likely to arrive. This market is still the most robust it has been in years. If you missed the very peak by a few months, don’t feel bad. Most people did. Adjust your price to what the market will bear, sell and adjust your plans to what you have. Sometimes it is hard to let go. But most of the time our clients will tell us that once they let go, the rest was easy. What they received in return that was most valuable was time. That’s the one thing that cannot be replaced by anyone.
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