When’s The Best Time To Sell Your Bucks County Townhome or Condo & Move Up?
To illustrate this question the best way I can I’m going to compare values of Spruce Mill Townhomes to Yardley Hunt Single Family Homes at the peak of the market in 2006 and now in 2011. You’ll see the difference in prices then & today & what the difference in total cost to you would be to make a move up in a seller’s market versus today’s buyer market. (All Stats are at bottom of post) We will also review the difference the mortgage rates make so you can see how much your monthly Principal & Interest would be.
In 2006 the median sales price in the Spruce Mill section of Makefield Glen was $277,950. So far in 2011 the median sales price is $243,125.
Median Sales Price 2006: $277,950
Median Sales Price 2011: $243,125
Difference in Sales Price: $34,825 which represents a 12.5% drop in sales price since 2006.
In 2006 the median sales price in the single family community of Yardley Hunt was $517,500. So far in 2011 the median sales price is $465,000.
Median Sales Price 2006: $517,500
Median Sales Price 2011: $465,000
Difference in Sales Price: $52,500 which represents a 10.14% drop in sales price since 2006.
There are a few ways to look at these numbers and figure out what it means to you as a Makefield Glen Resident trying to figure out if now is a good time to sell your home & make the move up to a single family home. If you’re asking yourself should I wait for the market to return to it’s height as a seller’s market the numbers above show you that although at the height of the market you would have received $34,825 more for your home you also would have paid $52,500 more for the single family home in Yardley Hunt so it would cost you $17,675 more to move up in 2006 than it would today in a buyer’s market.
Another factor that must be taken into consideration is the cost to buy and sell. Following are Closing Cost Estimates for both Makefield Glen & Yardley Hunt based on the median sales price in 2006 & today in 2011 for a seller & buyer.
Although home values have come down in Makefield Glen since the markets peak the cost to sell has also come down as your commission & transfer tax will be lower. Not a huge boone, but something to factor in. So in 2006 at a sales price of $277,950 your commission (based on 5%) & transfer tax would have cost you $16,677. Today in 2011 at a sales price of $243,125 your commission & transfer tax would cost you $14,587.50 for a savings of $2,089.50. I know this doesn’t make up for the drop in prices, but it is something to keep in mind. The real savings come with the purchase of your new single family home in Lower Makefield.
In 2006 the median sales price in Yardley Hunt was $517,500 and the interest rate averaged 6.54% that year. You’ll see in the example below based on putting down 20% your Total Funds Needed To Purchase (TFNP) was $123,227.32 and your monthly Principal & Interest (P&I) would have been $3,234.08.
Today in 2011 the median sales price in Yardley Hunt is $465,00 and the interest rate is hovering around 5%. You’ll see in the example below based on putting down 20% your Total Funds Needed To Purchase (TFNP) is $111,681.16 and your monthly Principal & Interest (P&I) would be $2,603.40.
So to compare buying today instead of in 2006 saves you $11,546.16 because your down payment & transfer taxes are lower. This is the money you need to bring to the table so it is real hard money you’re saving. Also, due to the lower sales price & the drop in interest rates you will save $630.68 each month on your Principal & Interest. This translates to $7,568.16 per year & $227,044.80 over the life of a 30 year loan.
As you can see the best time for a move up buyer to sell their home is during a buyer’s market because the rewards when purchasing the larger home are so great.
If you’re thinking about making a move give me a call for a free no pressure, no obligation review of your home & to discuss what’s currently on the market that might make the move worth it for you.
Prudential Fox & Roach Realtors
Statistics Used In Post
Spruce Mill CMA 2006
Spruce Mill CMA 2011
Yardley Hunt CMA 2006
Yardley Hunt CMA 2011
Spruce Mill Seller 2006
Spruce Mill Seller 2011
Yardley Hunt Buyer 2006
Yardley Hunt Buyer 2011
The postings on this site are my own and do not necessarily represent Prudential Fox & Roach’s positions, strategies, or opinions.
Information re: homes listed for sale & recently sold properties was obtained from Trend MLS and the properties contained in the list were listed and sold by various participating Brokers in the MLS. If your property is currently listed with a Real Estate Broker, please disregard this notice. It is not our intention to solicit the offerings of other Real Estate Brokers. We co-operate with them fully. An independently owned and operated member of Prudential.