Buying up in a down market

Did you know that it is better to move to a bigger home in a “down” market than it is in an “up” or even a stable market? Because most people sell their current home before they buy a bigger one, they tend to look at the transaction from the seller’s standpoint. They see the loss they¬†may take on their current home and decide it is wise to wait for the market to improve.

But take a moment to consider this scenario.

Your home was worth $120,000 last year. If the market were down 5 percent, this year your home should bring $114,000, or $6,000 less than it would have last year.

Now suppose the home you will buy would have sold for $180,000 before the market slowed down. With the market down 5 percent, that home is likely to bring $171,000 this year, or a savings (to the buyer) of $9,000! So, as the person in the transaction moving up, you have saved a net of $3,000! Surprised? It is surprising! Down markets are the ideal time to make your move up to a larger home.

If moving to a larger home is in your plans, contact a Realtor now! There has never been a better time to get started.

Information adapted from David Knox: Pricing Your Home to Sell.

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