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Make Money In The Move-Up

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

The other day, we considered the case of a move-up in today's market. Our prices in the Tallahassee Real Estate Market have leveled off this year, but one of the readers wondered if doing a move-up in a depreciating market would work out for the "Mover." Assuming a depreciating market, where prices are down 10% for the year, the Mover would first have to sell a home for 10% less before he would buy a home for 10% less. Let's examine what that looks like.

If the market is down 10% selling, it is down 10% buying!


Current Home Future Home
Old Value $150,000 $250,000
Current Value (-10%) $135,000 $225,000
Difference $15,000 $25,000

As you can see from this simplified example, moving up in a flat or depreciating market can have its rewards.


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Joe Manausa, MBA, CRB, CRS | Broker / Owner | Century 21 First Realty

2365 Centerville Road | Tallahassee, Florida 32308 | 850-386-2001 | http://www.manausa.com/

 

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Joe Manausa Real Estate
1934 Dellwood Drive
Tallahassee, FL 32303
(850) 366-8917

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