The Real Estate Myth That May Be
Holding You Back
For those of you who have enough gazelle intensity to make bold money moves, we have a suggestion: Downsize your home and use the money you save to pay off debt, build an emergency fund or college fund, or invest for retirement.
"But Dave!" we can hear you say. "All our homes are underwater, and there's no one to buy them anyway!"
Well, we believe this is a myth, and it's holding lots of homeowners back from downsizing to more affordable homes.
Look Past the Headlines
Recent figures show that many homes are underwater, meaning the balance on their mortgages are more than the homes are worth. But far fewer homes are underwater than you might think. In the third quarter of last year, 22% of all homes with a mortgage were underwater. That's the number that gets the most media coverage.
But that number also means that more than three out of four homes are not underwater.
Dig a little further and you'll find that most underwater mortgages were found in five states: Nevada, Arizona, Florida, Michigan and Georgia. If you live in any of these states, the odds are less in your favor since on average, 41% of those homes have negative equity.
In the remaining 45 states, only 17% of homes with mortgages are underwater. Those numbers will vary even more from region to region—even neighborhood to neighborhood.
The moral of the story is that you shouldn't let negative reports about housing talk you out of selling your home if it will put you in a better financial position. Renting, or even buying a smaller, more affordable home, will free up cash you can use to pay off debt, save for emergencies, or build wealth for the future.
Face the Challenge With Expert Advice
The next challenge in downsizing is finding a buyer. While there's no doubt the housing market is still in a deep slump, existing home sales have picked up steam over the last few months. Thanks to low interest rates, bargain home prices and tons of people tired of putting off home buying, the trend is expected to continue.
But there's no reason to wade into this scene on your own. An experienced real estate agent will help you price your home to sell and save you money on your new home. One of Dave's real estate Endorsed Local Providers (ELPs) will work with you to make your downsize a success. Contact your ELP today.
The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
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Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com
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