I could make a $250,000 profit today if I sold my house. Here’s Why I’m Not Doing It fact that property values are rising is causing concern among many potential home purchasers. However, some people are benefiting from the skyrocketing home prices.
Take, for example, existing property owners. Those wishing to downsize their properties might make a nice return by selling them.
Those who do not want to sell their house have more possibilities for borrowing against their equity.
My house is worth a lot more now than it was a few years ago, as it is for many other individuals today.
A real estate agent just contacted me with an offer that would net me a $250,000 profit on my home. But, while that’s a huge sum of money, I’m not going to sell for a few key reasons.
1. I won’t be able to make any money.
What about the extra $250,000 I might get from selling my house? It won’t be mine to keep after all. That’s because I’ll almost certainly have to spend that much on a new home.
I’m not looking to downsize at this time in my life. We don’t want to lose space because we have three school-aged children and a huge dog. So whatever I gain by selling my house, I’ll lose by having to pay a higher price for a new one.
2. I’ll be stuck with a higher interest rate on my mortgage.
My spouse and I decided to refinance in the middle of 2020. We now pay relatively little interest on our mortgage because interest rates were so low at the time and we were able to take out a 15-year loan.
I’d need a new mortgage if I sold my house and bought another. And, given today’s considerably higher borrowing rates, that would entail agreeing to pay a lot more interest. That’s money I’d rather put into the stock market or retain in my pocket.
3. I’m not interested in moving.
I know what it takes to pack a house from top to bottom, and it’s a chore I’m not up for right now, what with a full-time job and a packed calendar of activities for my kids.
Furthermore, moving is costly. And, given how much stuff we have, even a nearby move should cost a few thousand dollars.
Furthermore, I am well aware that simply relocating a few minutes away may require me to remove my children from their existing schools. That’s not something I’m interested in doing.
I’m not in the least bit tempted.
You’d think that a $250,000 profit would entice me to make a bid on my house. However, considering the situation of the real estate market and my lack of want to relocate my family at this time, it does not attract me in the least.
The truth is that many people might make a good living by selling their homes right now. Because there is so little inventory in the property market, buyers are keen to get their hands on a home, and many are making lavish offers as a result.
But, before you hurry to accept an enticing offer for your home, consider whether you’ll genuinely benefit financially from the transaction. You might discover that sticking put is the best option.
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Mortgage rates are rapidly increasing. However, by historical standards, they are still quite low.
So, if you want to take advantage of low rates before they rise too much, you’ll need to find a lender who can assist you in obtaining the best possible deal.
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