The reason it is not a good idea to pay off the bond if you plan to sell your house in the near future is ...assuming the house is relatively new and you have an approx $20,000 bond, if you paid the bond off you would have to sell your house at $20,000 over comparable houses in your area to break even. Doing so could also put you in a different pricing market for people looking to buy a home and limit your potential buyers...ie if your house is appraised at $289,000 you would now have to price it at $309,000 to recoup the bond price. However alot of people when looking for a house look at price ranges and if their rangewas under $300K well they may have missed your home.
Considering most people when they first look here do not even know what a bond is, they will always go to the cheaper house. Even if there are those who know about the bond and it being paid off, in most cases they will make offers much less than you can probably get by just selling the house outright.
Paying off the bond only makes sense if you plan to stay in the house!
|