Quote:
Originally Posted by BPRICE1234
Should I take the discounted price and bank on a decent return when I sell in 3 years? I see so many listed and they don't seem to move that fast on the pre-owned.
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Don’t forget to include closing costs in your thinking. They add up. One of the biggest costs is the sales commission when you sell. And then factor in costs of ‘improvements’ that you make to your 3-year home. Your hoped-for appreciation would need to be much more than closing costs + improvement costs + time value of money in a period of higher interest rates to make it a good bet.
I believe the days of almost-certain average home appreciation over 10% per year around here are over for now as long as mortgage lending rates are high compared to recent historical levels. This means local home appreciation before lending rates jumped in 2022 may not be very relevant now.