Hi, it’s Sue Bonzell, with Vanguard Properties in Sebastopol, CA. For the last couple of weeks I’ve been talking about options that are available to you if you’re downsizing, or wanting to sell your current home and find a replacement. Lots of folks looking to do that right now in Sonoma County, and it’s a little bit scary, folks are worried that they’re not going to find a replacement home, and sell their current home and have nowhere to live. So, that’s a valid concern. We’ve been talking about some of those solutions and today, I’d like to talk to you about using the equity you have in your current home to help you get into a replacement home.
The first thing you want to do is contact your realtor, to get a CMA, a Comparative Market Analysis. Realtors are going to be able to tell you what your home is worth in the current real estate market if you were to put it on the market right now. You’re going to take that number and you’re going to visit a local lender, and you’re going to share with them what you currently owe on your loan on your home and then you’re going to share the number that your realtor gave you on that CMA. It’s going to show you how much equity you have to work with. So, you might be able to pull out a chunk of money to use as a down payment to purchase that replacement property, and then you can take your time to sell your home and once you sell that home you can take all that money and you can re-finance that new home, bring that payment down, and you may even have a little extra money left in there depending on how much equity you have. You might be wanting to buy that new sports car you’ve had your eye on. It’s a possibility. So that’s just one more solution to moving from one home to another, finding that replacement home.
I’ve got one more solution for you that I will share with next week’s blog. I hope you’ll tune in then. I’m Sue Bonzell with Vanguard Properties.
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