View on iPad/iPhone HERE

Transcript

JOHN:  Hey, guys.  This is John Jones with another edition of Tuesday Morning Coffee.  Today, what I’m going to talk about for a second is fear.  In this market that we’re in and talking to sellers on a daily basis, I see a lot of fear.  It’s the fear of loss.  It’s the fear that we can’t sell our home today for what we could two or three years ago.  It makes me think about what FDR said right after he got elected president and he was talking to the nation in his first inaugural address right in the pits of The Depression.  And he said, “Guys, the only thing we have to fear is fear itself.”

And that’s what I’m going to tell sellers is put away your fear.  If you’re a move-up  buyer right now, who cares that you’re not going to be able to get what you could have gotten for the house two years ago?  Guess what?  You’re not going to pay for this new move-up home what you would have paid two years ago or three years ago.  So who cares?  In fact, in a lot of instances, you’re going to save money.  And what I mean by that if you’re moving up from a 200 that supposedly you could have gotten 220 three years ago, four years ago, and you’re moving up to a 300 that was a 330 or 340 two or three years ago, then guess what?

You’ve netted $10,000 to $20,000 by just making the move right now at a depressed price.  Another great advantage of doing this right now is the rates. If you’re selling a home that has a fixed rate on it of above 5%, then you are going to get a better rate now.  And that’s the cost of money over 15 or 30 years.  So you’re saving money there.  In a lot of instances, you may move to an area that’s going to catch better appreciation down the road than the current home you’re living in for whatever reason.  There again, you’re positioning yourself in a better environment for down the road. 

So I tell people don’t look at it from a today perspective.  Look at it from a five-year perspective because really right now we’re just swapping equity when we sell.  When the bounce comes back, we’re going to get it in the new house just as well as we would have gotten it in the old house.  In five years, I think in most cases, you’re going to look at it and say, “Boy, I’m glad we did that.”  If you need things for your family: more space, bigger yard, whatever, just typical move-up things, don’t be scared by this market.  If you have the equity in your home to sell it, don’t be scared because there is nothing to be scared about.

But hopefully, if you have any questions, you’ll give us a call, 867-3020, or you can visit us on our website at JohnCJones.com.  Thank you and we’ll see you next week.