10% price drop decimates san diego home owners equity

How a 10% drop in price means a 70% reduction in John’s equity

GET A FREE Report on our Strategic Home Sale to AVOID losing 70% of your equity.

10% of $700K is $70K. But what’s worse is most people owe a loan say, $600K. So the $70K in equity lost represents 70% of all your equity of $100K. So when the property drops from $700K price to $630K, your wealth equity goes from $100K to $30K. 

So it’s really not going down 10% you are losing 70% of your wealth (equity) in the home. 

You could definitely wait it out if you are prepared for 7+ years, but in the meantime, that $100,000 could be working for you if it went up 5% a year for investments or the stock market that $100K would grow to $140,700. 

So if you waited for the market to come back, you are risking the price now and the opportunity cost of using the money now. 

Three reasons not to keep a home in an unpredictable real estate market. 
1.    Equity evaporates. 
2.    You are chained to a property/loan. 
3.    Opportunity costs, you lose what you can’t do with that money.

If you would like to see how to net the most money now for your home, call me at 619-846-1244. I’ll prepare a free, comparative market evaluation and the pricing trend of where your home price is likely to go in the next few months.

Did you know that “experts” predict that the long-term impact of COVID-19 could be more than 42 million unemployed and a recession? Also, real estate could lose 5-15% of the value.

No one has a crystal ball, but a lot of people have homes or investment properties that they would like to take the profit and move-on.