Yes, now is the perfect time to upgrade!

So here’s the deal; for those of you that are thinking that now is not a good time to do anything in real estate, I’d like to break it down a little.

Contrary to the news that you all have been hearing, it’s not necessarily a “hot market” (in general). It is all dependent on your point of view. In certain price ranges, we are in a “hot” Seller’s market; in other price ranges we are actually in a “hot” Buyer’s market.

So here’s a scenario:

Your home is currently worth approximately $350k. The market on your home is leaning heavily toward the Seller (you). Once you sell your home, you would like to upgrade to a bigger home, approximately $575k. The market on the home you are buying is leaning a lot less toward the Seller. In fact, the inventory is over 3 times as much in the $575k price range than the $350k price range ($575k is actually an even market right now). When you get above $600k, it switches to a Buyer’s market because the inventory is much higher at that price range.

Another factor to consider is the interest rate. Even though the rates have been fluctuating slightly, we are still at some of the absolute lowest rates in history!

Let’s venture into the future a little…

Let’s say you decided to sell your current home right now and make the jump into a bigger home at $550k. If your interest rate is approximately 3.75% and you put 20% down. Your payment might be somewhere around $2000/month (principle and interest). Let’s pretend that 3 years from now (when the market shifts again like it always does) and the interest rate is 5.75%. Your payment would then be $2500/month and you would pay $180,000 MORE over the life of the loan for the new bigger house. Also, with a higher interest rate, you may not be able to qualify for the bigger home. The same payment at an interest rate of 2% higher results in qualifying for $100,000 less in purchase price!

That’s not all. Once the market shifts, we will most likely be in a “hot” Buyer’s market for your current home, which means more competition, more seller concessions, longer market time and ultimately lower prices. Meaning it will possibly cost you more to sell your home and that will give you less money to put into a new home.

Believe it or not, Real Estate is consistent… over time. It is cyclical. If it goes down, it will eventually come back up; if it tops out, it will eventually fade off. Interest rates will rise. None of us know the specifics, however, we’ve seen it over and over.

I have outlined a few interest scenarios below. Be sure to call us or send us an email if you have questions. I can explain the chart in depth if needed. We also provide no obligation, real person, accurate home evaluations. (Not those lame automatic “estimates” at

Brian Thomas – BTT Real Estate – 720-934-4745


Interest Rate Purchase




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