Sell High and Build High?
Hello,
I understand the current real estate market and that home prices are selling at all-time highs and the cost of residential building is as well. My situation is that I really want to move but the specific type of property I want (acreage in a specific school district) is really hard to find.
Is it wise to sell my existing home high (for almost $200k more than I built it for) and then build at a high cost? I understand that equity will balance out, but what about when it comes time to sell? If I'm forced to sell for less than I built it for, that equity goes away, right? Sorry for the ignorant question and thank you for your time.
Chad
Chad,
Yes, if you build a new home and then sell it for less than you built it for you will have a loss. So Yes, some of the equity will evaporate.
It's wise if you want to live on the specific type of property you mention. Quality of life has more benefits then just a $ number associated with equity in your home.
Good Luck
Sell it.
Michael and Greg,
Thank you for the responses. I've got my radar up for prospective properties and ready to pull the trigger should something come along.