Recently a friend reached out and wanted to talk about listing their home and purchasing another.  As a realtor, I loved the idea of having a listing and buying clients all rolled into one family! However, as we talked, I realized that this was really not the smartest choice for this family.  

Their circumstances are familiar to a lot of people: young family, working hard and studying for a degree while working multiple jobs. They have two children who are involved in school and activities and are trying to maintain their older home in the midst of all of this.  They look at their home and think "life would be easier if......"

And life might be easier if they had: off-street parking, an extra bathroom, a dry basement for kids to play in, a functional kitchen, more yard for kids and pets, a new roof and the list goes on.  But after breifly chatting about their finances and taking a tour of their home, I came to the conclusion that to acheive their goals, they should stay in the home they are currently in.  Why would I talk people into NOT listing with me?

I really care about the people that I work with.  I do not have a singular goal of buying or selling with them.  It matters to me that after closing when we've celebrated the sale, that my clients are comfortable in the postion that they are now in.  It was apparent to me that while moving to a newer home would solve some problems, it would also create others.  Why was it smarter to stay in their current house rather than move to something newer?

1. Low-Interest Rates: This family had refinanced in 2020 and had locked in at a 3% interest rate. Rates are currently above 8% and that makes a big difference in a monthly payment. Plus this can save you a significant amount of money over the long term life of the loan. By staying put, these clients can continue to benefit from their existing low monthly payment, freeing up more of their monthly budget for other expenses or savings.

2. Equity Building: As they make their monthly mortgage payments, they're building equity in their current home. This equity can be leveraged for home improvement projects, allowing them to increase the value and comfort of their current residence. By investing in renovations, they not only enjoy an upgraded living space but also enhance the future resale value of their home.

3. Avoiding Transaction Costs: Selling a home and buying a new one involves significant transaction costs, including real estate agent commissions, closing costs, and moving expenses. By staying in their current home and investing in renovations, this couple can avoid these expenses, which can be quite substantial, depending on the location and the price of the home.

4. Familiarity and Comfort: There's something to be said for the comfort and familiarity of your current home. You know the ins and outs of the property, the neighborhood, and the neighbors. Moving to a new home can be a disruptive and stressful process, whereas renovating your current home allows you to make improvements while preserving the sense of comfort and familiarity you've grown to love. And let's not even talk about getting a house ready to sell AND the keeping a home pristine while having buyers walk through and examine your home and belongings!

5. Location, location, location-the 3 most important factors in real estate! This couple purchased their home in the town center of the much-sought after Borough of Nazareth. While their historic home may be "old" to them, it has good bones.  I was impressed with a home as old as theirs having quite large rooms and incredibly big closests.  They are within walking distance of all of downtown and a good walk to 3 of the 4 schools the kids will be attending. NASD is widely thought to be an excellent school district. 

So while they would have made money on the sale of this house, it was still wiser fiscally to stay there for a little longer.  With their low-interest rate, low monthly payments, the opportunity to continue building equity, staying in their current home and investing in renovation is the financially savvy decision.  By doing so, they can enhance their living space, increase the value of their property, and enjoy the financial advantages of low-interest rates and affordable monthly payments.