Sell High and Build High?

[Chad Pearson]

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

[Michael P.]

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