It’s the perfect summer time, and you want to spend the money that will be on the books for your home.
That means you can make the most of the extra cash by selling your home for more than you can afford to keep it, according to the National Association of Realtors.
And you’ll likely be getting some pretty big savings from this.
“It’s not like you have to sell your house,” says David Kostelnick, president of the National Realtor’s Association.
“If you sell for less than what you want, you can sell for a lot less than the current market price.”
The average price for a one-bedroom apartment in the borough is $2.5 million, according the Realtive Group, which tracks the market.
(The median is $3.8 million.)
But it’s not all about selling for the big bucks.
According to a report by real estate agent Craig Fuchs and his company, Real Estate Partners, the average asking price for one- and two-bedroom properties in the Brooklyn borough is only $1.5 to $1,2 million.
That makes them more affordable than some other boroughs that have historically seen more expensive homes go for even more.
“A lot of these homes were built during the recession,” says Kostellnick, adding that he has clients in Brooklyn who are still buying up the same homes.
But Kostelman says he’s also seen more people selling their homes in recent years than he did in years past.
So if you’re selling your one-bedroom home, you might not want to do it unless you can keep up with your mortgage payments.
And if you can’t afford to pay the mortgage, you’re not likely to be able to get a new home in the next two to three years.
And don’t worry, there are still many buyers willing to sell their houses for cash.
“People are making the most out of the economic downturn,” says Scott Ressler, senior vice president at RE/MAX Realty.
“They’re making a lot of money off of this market.”
If you can get your home off the market before the market tank, you could be getting a nice cash infusion in the form of a discount.
But it may not be worth the risk.
You could end up paying far more than the market price for the same property, according Toobin.
That could make your property a bargain, but you could end out with more debt on the mortgage.
“In my experience, when you have a mortgage, the most common reason for refinances is to make your house less expensive,” says Ressler.
“You’re not going to want to refinance your house if it’s under $2 million, and that could cause you to have to pay more on your mortgage.”
If that happens, you should consider selling your property before the price rises.
“When you sell your home, don’t take it to a buyer who’s willing to pay $2-3 million for the house,” Kostennick says.
Instead, “look for someone who’s looking to buy it for less.”
The other option is to go the traditional route and move into a cheaper home.
If you’ve got the money, it may be worth it.
But there’s a downside: you’ll be more likely to lose out on the potential tax benefits of moving into a lower-priced home.
And that could lead to a higher-than-average mortgage payment on the new home.
“Some people who can afford a house may have the money to buy a smaller house in the same neighborhood and build more of that home,” says Toobin, adding, “if you’re looking for a cheaper place to live, you’ll have to take that into account.”
You may be tempted to make some drastic changes to your lifestyle, but Kostalnick warns against doing that.
“There are many people who want to live in a different place and have a different lifestyle,” he says.
“But I think that’s really not good for you.”
It may be time to get creative.
Here are some tips to help you make the move.
Renting Your Home for Less: Many of the homes in the neighborhood that have the cheapest asking prices can be rented for less.
That’s because people in those neighborhoods don’t want to move out of their homes and into cheaper ones, says Riggs.
“That’s why you can find a lot more affordable homes in Brooklyn than in other areas of the country,” says Realty Group’s Fuchs.
You’ll be able go out to restaurants and bars and eat in restaurants and buy meals out there instead of staying in your apartment.
If your home is available for rent, it might be worth getting rid of it.
“Buy your house, and go and rent it out for a few months,” says Fuchs, adding it’s cheaper to