Pittsburgh, PA Real Estate: Smart Buyers Are Moving Up

It is well known that the Charleston SC real estate market is a buyer's market. Despite this common knowledge, many buyer's are still hesitant to move forward and buy a home in Charleston SC. A variety of reasons are contributing to home buyers sitting on the fence, but many of them are simple misconceptions and fear.

Let's look at one type of buyer in particular: Move up buyers. A buyer's market is the perfect time to move up. But many home owners in Charleston SC are not even considering it. This can be a mistake, and potential buyers are missing a prime opportunity.

Homeownership is the biggest key to building personal wealth in this country. You have to look at owning a home as an investment, because it is. Certainly, it is also where you live, but you always have to keep in mind that it is first and foremost an investment. A buyer's market offers you the opportunity to increase your net worth at a lower cost. Below I will show some simple numbers to better illustrate this point.

First, let's look at the common reasons that buyers are reluctant to move up in the Charleston SC real estate market. The fact that it is a buyer's market, many simply do not want to sell because of "lost money". They simply cannot sell their house for what they could have a few years ago. While this is true, what they are missing is the fact that the new house they buy will be purchased at a discount! The equity that they would be losing by selling their current house is more than made up by the savings on the new home. Here is an example to illustrate this, using simple numbers.

Let's say there has been a 5% drop in the market this past year. Your house was worth $200,000 this time last year, but with the drop you would now sell it for $190,000. Most homeowners in Charleston SC would see this as a $10,000 loss, and the thought of selling is done.

However, take a look at a more expensive home. If you look at the $400,000 home, and take off the 5%, you are left buying this new home for $380,000. You just bought a $400,000 Charleston SC home, but paid $20,000 less for it.

As you can see by the example, the gain on the buying side outweighs the loss on the selling side. Not to mention, as the homes appreciate over time, the more expensive home will build more equity simply because it has a higher value to start with.

There can be some fear for homeowners in attemting to list their houses for sale in the current Charleston SC real estate market. There is a large inventory of homes, the Absorption Rate is the highest it's been, so there is a lot of competition. Why sell if you don't have to, and risk the frustration?

When looking to list your house for sale, it is important that you do your homework and get the best information in making this decision. The internet is a great tool, but you also need the help of a Charleston SC Realtor. Not just any Realtor, but one that is tuned into the current Charleston SC real estate market. Talking with someone to explore this opportunity would only take a little time, and this is a prime opportunity that smart, savvy homeowners are taking advantage of to their benefit.

Visit my site for helpful home selling services and to find your Charleston SC list agent.

Jeff McIlhenny is a licensed SC Realtor with Weichert Realtors Palmetto Coast in Mt Pleasant, and serves the entire Charleston SC real estate market. You can reach him at 843-452-2953 or email at jeffm@weichertpc.com