Ike and Tina Married and Moved into Their New Home

question 327

Essay

Ike and Tina married and moved into their new home (purchase price $800,000) 18 months ago. They are thinking of selling the home which is now worth $1,300,000. They plan to reinvest in a smaller home costing approximately $600,000. What should they consider before selling their home?

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Definitions:

Capacity Shortage

A situation where the demand for a product or service exceeds the available supply or production capability.

Peak Periods

Refers to times of highest demand or activity within a business or market sector, often requiring increased resources or capacity.

Off-Peak Periods

Times when demand for a service or product is lower, often leading to reduced prices or rates to encourage usage or purchase during these times.

Demand Shift

A change in consumers' desire to purchase goods or services, influenced by factors like price changes, seasonal trends, or evolving preferences.