Northern Nevada Real Estate ...
Moving In The Same Market
One thing we can count on in life is change. The typical first car has characteristics that don't work later when you are transporting children, i.e.- questionable dependability. After the children leave home vehicle selection has more of a wants than needs emphasis. Real estate is similar as wants and needs change over time.
The first time home Buyer is open to many options and mostly driven by price as it reflects on their payment. First homes are often remembered as fondly as are first cars. The property's deficiencies that are tolerated due to life's circumstances become a part of an individual's or couple's life history with the stories being told and retold for generations. The single bath, one car garage, or small lot that couldn't hold all the toys that preceded the children all served well until they were outgrown.
Life's progression takes us through needing a larger home, maybe a larger lot, or other special wants for a specific lifestyle or activity. Sometimes the first home is kept as an investment, or for a family member to enjoy later. Often properties are sold for the move up. Conversely, later in life as the children move out and our energy is preferred to be directed to other activities than caring for a large property, the move to the smaller home and property often occur.
With each change there is a move within the market. Whether up, or down, there are decisions to be made, each with financial and emotional consequences. Recent years have stymied some of these moves for a variety of reasons. Some were reluctant to move up due fear of the stability of the global economy. Others couldn't move down as they couldn't sell their property. In some situations equity just wasn't there, many homeowners having found themselves owing more than their property was worth. So what's different now? Time has solved much.
Buyers, Sellers, Lenders and Agents better understand their roles in today's market. Buying or selling; short sale, bank-owned or normal; cash or new loan; free and clear or upside down, every situation can be analyzed in the context of your wants and needs and the reality of achieving them. If you need to change homes now is an excellent time to get it done. Northern Nevada is a transitioning market. Inventory has diminished and values have stabilized and increased in many areas. Interest rates are at all time lows. Its time.
Our Advice: Buy what you want or need, whether up or down. Lose the perception of loss from what your home was worth in 2005, and realize that the home you want to buy has also adjusted dramatically. If you move in the same market, you are simply changing homes to one that works better for you. If you move down, and the market drops, you will "lose" less. If you move up and the market jumps, you will have more appreciation potential due to the higher price point of your new home. You can slice and dice the numbers, but in reality, what is most important in most circumstances is to enjoy the emotional return on your investment. If the yard is now too big, move down. If you don't need 4 bedrooms, move down. If you have a 7 person family in a three bedroom one bath home, move up. It's easier than you may think and your professional agent can help you design a personal plan to enhance your life through your real estate decisions.
Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts.
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