Submitted by Ellen Messerschmidt

Generally speaking, the price of homes has dropped about 6%.  So if your house was worth $200,000 a year ago, today it would be worth about $188,000, a drop of about $12,000.  Many people want to wait till the market improves before they put their house on the market.  That only makes sense if you are planning on purchasing a less expensive home than the one you are selling.  Because, right now, a house that was selling for $300,000 a year ago, is selling for $282,000.  That means you would be paying about $18,000 less than you would have a year ago.  That saves you $6,000!
 
Do you see the value in buying and selling now while the market is down?  If you wait for prices to go up, it's going to cost you more money to move than it will when you purchase now. 
 
Another consideration is your bargaining power when it comes time to negotiate a contract.  Without getting your home sold first you will not have the negotiating advantage.  Let me explain why.  If you wait to list your home until you find the house you want, it will be very difficult to convince the seller to to take a contingent offer in today's market, unless it is a full price offer, and even then there is no guarantee.  Then you will have to put your house on the market and have to price it to sell very quickly.  You will be willing to accept just about any offer in order to purchase your new home.  So you will pay top dollar and sell for bottom dollar.  Doesn't make sense, does it?
 
 
Ellen Messerschmidt
Buyer's Specialist for The Fauscett Team
Keller Williams Realty Lanier Partners, Gainesville GA
770-789-2928 (cell)
770-297-7617 (fax)
www.TheFauscettTeam.com