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.